New Delhi: For some time now, there has been a slowdown in the shares of the railway sector. Especially, there was no major announcement for the railway sector in Budget 2024, this also weakened the morale of the investors. Many stocks of the railway sector also saw a 20 percent correction. But, the shares of Texmaco Rail can jump by about 35 percent.

Domestic brokerage Nuvama Institutional is quite bullish on Texmaco Rail. Nuvama believes that Texmaco shares can give a return of up to 35 percent. Texmaco Rail has performed very well in the June quarter on an annual basis. But, on a quarterly basis, both its revenue and profit have declined. However, the brokerage believes that the first quarter of the financial year remains sluggish for most companies.

Texmaco Rail's order book is strong

Nuwama says that in the June quarter, Texmaco Rail's order book was Rs 7,460 crore. 60% of this is wagon orders. Texmaco's power division has also recently received an order of Rs 240 crore from Mumbai Railway Vikas Corporation. The company's net-cash continues to improve. The company can complete the acquisition of Jindal Rail by next month. For this it will have to pay Rs 615 crore.

Texmaco Rail Target Price

Nuvama has a 'Buy' rating on Texmaco and a target price of Rs 331. Shares of Texmaco Rail were trading 2.02 per cent higher at Rs 250.25 as of Friday afternoon. Kolkata-headquartered Texmaco manufactures railway wagons, coaches and locomotives. Its subsidiaries include Belur Engineering Private Limited, Texmaco Transtrack Private Limited, Texmaco Rail Systems Private Limited.