Why is Texmaco Rail falling/rising?

Jun 30 2025 09:16 PM IST
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As of 30-Jun, Texmaco Rail & Engineering Ltd is priced at 176.10, down 1.23%. Despite recent short-term declines and decreased delivery volume, the company has strong long-term growth fundamentals, with significant annual increases in net sales and operating profit, suggesting a positive outlook.
As of 30-Jun, Texmaco Rail & Engineering Ltd is currently priced at 176.10, reflecting a decline of 2.2 points or 1.23%. The stock has been underperforming, having fallen consecutively for the last two days with a total decline of 1.34%. Additionally, the stock's delivery volume has decreased significantly, down 44.52% from the five-day average, indicating a drop in investor participation. Despite this short-term decline, the company has shown healthy long-term growth, with net sales increasing at an annual rate of 22.76% and operating profit at 27.93%. The company has also reported positive results for the last ten consecutive quarters, with a notable growth in profit after tax and a strong return on capital employed, suggesting a solid underlying performance.

In the broader market context, Texmaco Rail's short-term performance over the past week has been notably better than the benchmark Sensex, with a return of 8.37% compared to the Sensex's 2.09%. However, the stock has underperformed over the year, with a return of -29.21% while the Sensex has gained 5.79%. Despite the recent price decline, the stock is trading at a discount relative to its peers and has a favorable PEG ratio of 0.3, indicating that it may be undervalued despite its recent struggles. This combination of strong fundamentals and recent price movement suggests that while the stock is currently facing downward pressure, its long-term outlook remains positive.
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