Synopsis: Railway stock is in focus upon winning a ₹51.45 crore North Eastern Railway order for power supply and electrification of TSS, SSP, and BSP buildings in the GKC–VKNR section, part of the GKC–VKNR Doubling Project, to be completed in 24 months.
The shares of a Small-Cap company, specialising in manufacturing railway rolling stock, including wagons, coaches, and locomotives, as well as steel castings, hydro-mechanical equipment, and bridgework, are in focus upon securing the prestigious GKC–VKNR Doubling Project Contract.
With a market capitalization of Rs. 3,706.54 crores in the day’s trade, the shares of Texmaco Rail & Engineering Ltd declined by 2.1 percent, reaching a low of Rs. 90.15 per share compared to its previous closing price of Rs. 93.15 per share.
What Happened
Texmaco Rail & Engineering Ltd, engaged in manufacturing railway rolling stock, including wagons, coaches, and locomotives, as well as steel castings, hydro-mechanical equipment, and bridgework, has secured a significant order worth Rs. 51.45 crores from North Eastern Railway.
The contract involves the design, supply, testing, erection, and commissioning of power supply installations and electrification for TSS, SSP, and BSP buildings in the GKC–VKNR section of the Varanasi Division. This project forms part of the ongoing GKC–VKNR Doubling Project and will be executed entirely within 24 months from the date of the Letter of Acceptance.
Recently, the company has also received an order worth Rs. 3.54 crores from Western Railway for the provision of anti-bird discs on insulators across the electrified territory of the Vadodara Division. The project is scheduled to be completed within 18 months and is a domestic contract, with no involvement of promoters or related party interests.
Financials
The company’s revenue declined by 4.16 percent from Rs. 1,086 crores in December 2024 to Rs. 1,041 crores in December 2025. Meanwhile, Net profit declined from Rs. 47 crores to Rs. 39 crores in the same period.
The company demonstrates strong fundamentals, with a decent ROCE of 11.2% and ROE of 6.39%, it generates steady returns while maintaining a conservative debt-to-equity of 0.29, keeping financial risk low. Its PEG ratio of 0.20 suggests the stock is undervalued relative to growth, highlighting long-term potential.
Market-wise, the P/E of 22.2 is below the industry average of 28.1, indicating relative affordability. The company also maintains a dividend payout of 19.8%, balancing shareholder returns with growth. Overall, the stock reflects prudent management, stable profitability, and attractive value for investors.
Texmaco Rail & Engineering Ltd, founded in 1939 and part of the Adventz Group, is a leading Kolkata-based engineering company producing railway wagons, locomotives, and steel castings.
The company reported Revenue from Operations of Rs. 1,042 crore, with the Freight Car division contributing the largest share at 81%, followed by Infra – Rail & Green Energy at 8%, and Infra – Electrical at 11%.
The company boasts a strong order book valued at Rs. 5,661 crore, driven by robust domestic demand and expanding export opportunities. Their export of components and railway castings is projected to grow three to five times over the next two to three years.
It operates five freight car and components manufacturing sites, including two large foundries with a combined capacity of 48,000 MTPA, one of which is accredited by the Association of American Railroads (AAR).
It serves Indian Railways, private operators, and international clients, exporting over 550 freight cars in the past three years across various geographies. Their product portfolio is diverse, featuring more than 20 types of freight cars, castings, interiors, and braking systems, alongside expanding ventures into infrastructure projects and green hydrogen solutions. The integrated foundries enable cost-efficient manufacturing with capabilities in mild steel, stainless steel, and composite rolling stock materials.
The company also benefits from strong technology partnerships with industry leaders like Touax Texmaco, Nymwag Texmaco, and others, covering a broad spectrum of freight leasing, manufacturing, braking, interiors, high-speed rail, infrastructure, automation, AI, and green technologies. These collaborations position Texmaco at the forefront of innovation and sustainable growth in the rail engineering sector.
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