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Texmaco – Multibagger

About The Company
An Industry For Industries, Under the inspiration of the Mahatma,the House of Birlas led the industries community in building a self reliant India.
About The Financials Results
A lot was expected from this company and when it posted a disappointing performance, investors took the hurt badly and beat down the stock price. But a week later the price bounced back on news that it has managed to raise Rs.170 crore via QIP and the funds raised were to be used for new projects. Yesterday, the stock was up over 6% at Rs.113.
For first quarter ended, though the actual numbers showed a dip, there has been an improvement in the profit margins, indicating better cost controls and realisations. Its net sales for Q1FY10 was down 9% on a YoY at Rs.183.40 crore. Net profit fell 9% at Rs.20.85 crore. On the other hand, OPM was up from 18.25% to 19.02% and NPM was up marginally from 11.60% to 11.37%.
A look at the segmental margins shows that its biggest earner during the quarter has been realty division which showed an EBIT margin of a whopping 78%. Heavy engineering was at 13% while steel foundry was at 16%.
During the quarter, the company earned the distinction of being the only supplier of the new generation, high-payload, SS BCNHL Wagons urgently required in bulk by the Indian Railways. However, the production flow was impacted for part of the period owing to certain technical issues in the new design construction, which have since been resolved and would lead to higher production in subsequent quarters.
The company currently has a debt of around Rs.89 crore and its debt equity is below 0.25. Its order book is at Rs.1300 crore.Texmaco is expected to play a pivotal role in the Indian railways XI Plan and it had set up capacity to manufacture loco components, order for which has been received from Chittaranjan Locomotive Works. It has a JV with United Group, Australia, and is also planning to set up a modern facility to manufacture hi-tech wagons and locomotive bogie frames for the Indian railways, private industry and for exports.
About The Stock
The stock is good for long term prospective.

About The Company

An Industry For Industries, Under the inspiration of the Mahatma,the House of Birlas led the industries community in building a self reliant India.

About The Financials Results

A lot was expected from this company and when it posted a disappointing performance, investors took the hurt badly and beat down the stock price. But a week later the price bounced back on news that it has managed to raise Rs.170 crore via QIP and the funds raised were to be used for new projects. Yesterday, the stock was up over 6% at Rs.113.

For first quarter ended, though the actual numbers showed a dip, there has been an improvement in the profit margins, indicating better cost controls and realisations. Its net sales for Q1FY10 was down 9% on a YoY at Rs.183.40 crore. Net profit fell 9% at Rs.20.85 crore. On the other hand, OPM was up from 18.25% to 19.02% and NPM was up marginally from 11.60% to 11.37%.A look at the segmental margins shows that its biggest earner during the quarter has been realty division which showed an EBIT margin of a whopping 78%. Heavy engineering was at 13% while steel foundry was at 16%.

During the quarter, the company earned the distinction of being the only supplier of the new generation, high-payload, SS BCNHL Wagons urgently required in bulk by the Indian Railways. However, the production flow was impacted for part of the period owing to certain technical issues in the new design construction, which have since been resolved and would lead to higher production in subsequent quarters.

The company currently has a debt of around Rs.89 crore and its debt equity is below 0.25. Its order book is at Rs.1300 crore.Texmaco is expected to play a pivotal role in the Indian railways XI Plan and it had set up capacity to manufacture loco components, order for which has been received from Chittaranjan Locomotive Works. It has a JV with United Group, Australia, and is also planning to set up a modern facility to manufacture hi-tech wagons and locomotive bogie frames for the Indian railways, private industry and for exports.

About The Stock

The stock is good for long term prospective.

This entry was posted on Wednesday, September 23rd, 2009 at 6:50 pm and is filed under Stocks To Watch. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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