Why is Texmaco Infra share price rising? — explained

Shares of Texmaco Infrastructure & Holdings Ltd have been on an uptrend after ushering in June 2024. Texmaco Infra share price bottomed out at ₹103 apiece on June 4, 2024; since then, the railway stock has been ascending regularly. In this bull trend, Texmaco Infra shares touched a new peak of ₹143.70 per share on NSE, recording around 40 percent rise in the last three weeks. According to stock market experts, Texmaco Infra is expected to benefit from the growing Indian economy, expanding real estate sector, increasing investments in mini hydel power projects, etc. This potential for growth should excite and make potential investors eager about their investment in this small-cap infrastructure sector stock.

Triggers for Texmaco Infra shares

On why Texmaco Infra's share price is skyrocketing, Amit Goel, Co-Founder and chief Global Strategist at Pace 360, said, "Texmaco Infra's share price has indeed been on a tear recently, reaching a 52-week high of ₹143. The Indian railway sector is experiencing strong growth, and Texmaco Infra, as a small-cap company in this space, is benefiting from this momentum. As the Indian economy grows, the demand for infrastructure development will rise. Texmaco Infra stands to gain with its diverse portfolio."

Stock to buy today?

Giving a 'portfolio stock' tag to Texmaco Infra shares, VLA Ambala, a SEBI-registered Research Analyst and Founder of Stock Market Today, said, “Texmaco Rail & Engineering has been showing incredible financial performance. For instance, the company's revenue increased by 37.03% y-o-y in sales, while its net profit surged by 147 percent in the same period, demonstrating strong financial fundamentals. Its high PE ratio of 76.02 and PB ratio of 3.4 shows the stock has been trading at a premium. Besides these, with ₹8,668 Crore market capitalization, the company has offered a dividend yield of 0.06% and an ROE of 1.87%. The strong quarterly results of the stocks have boosted investor confidence, driving an increase of 186.42% in stock price.”

"Based on this technical analysis, investors with a long-term view may consider buying at a dip around the ₹200 to ₹210 range for a targetted price of ₹240 to ₹500. I suggest a holding period of 4-24 months for this stock while setting the stop loss at ₹180 to minimize the impact of market volatility," said VLA Amabala of Stock Market Today.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.