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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Texmaco Rail & Engineering Ltd

Basic Stock Data

Last Updated: May 30, 2024, 6:16 am

Market Cap 7,828 Cr.
Current Price 196
High / Low232/54.0
Stock P/E69.5
Book Value 62.2
Dividend Yield0.08 %
ROCE11.4 %
ROE5.88 %
Face Value 1.00
PEG Ratio1.66

Competitors of Texmaco Rail & Engineering Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Kabra Extrusion Technik Ltd 1,380 Cr. 395515/29043.6 1290.89 %10.5 %7.59 % 5.00
Bajaj Steel Industries Ltd 778 Cr. 1,4971,627/93615.3 5720.20 %30.7 %24.8 % 5.00
Lakshmi Machine Works Ltd 17,688 Cr. 16,55817,794/11,25044.0 2,3730.59 %22.9 %17.0 % 10.0
Action Construction Equipment Ltd 19,089 Cr. 1,6031,695/39869.0 87.70.06 %26.2 %18.8 % 2.00
ATV Projects India Ltd 131 Cr. 24.629.5/8.1820.2 37.40.00 %2.59 %3.31 % 10.0
Industry Average7,813.20 Cr4,015.5238.42639.820.35%18.58%14.30%6.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales458606331374470447299484625835657805896
Expenses409554295336435419309442570781636730814
Operating Profit485336383627-10425554217583
OPM %11%9%11%10%8%6%-3%9%9%7%3%9%9%
Other Income5136691061371139812
Interest27242626252322303231353734
Depreciation91099999999999
Profit before tax183279116-35162226173852
Tax %-1%39%29%36%85%-4%35%16%48%31%13%42%44%
Net Profit18205626-23141118152229
EPS in Rs0.530.610.150.180.050.19-0.700.420.350.540.450.680.77

Last Updated: May 10, 2024, 5:13 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 12:26 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales8294464391,0771,1541,1351,8581,8321,6891,8142,6003,503
Expenses7044294191,0261,0961,0751,6911,6751,5691,6772,4583,241
Operating Profit1251820515861167157120137142262
OPM %15%4%4%5%5%5%9%9%7%8%5%7%
Other Income31232445475121-12332313884
Interest1210124748617197103100116133
Depreciation91215151625293637363535
Profit before tax135191634422688-99123229179
Tax %30%10%15%20%20%48%15%33%-2%44%31%37%
Net Profit94171427341375-66121820113
EPS in Rs3.380.610.430.851.000.402.24-1.910.370.570.622.82
Dividend Payout %19%27%38%19%16%41%10%-3%21%18%24%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-81.91%-17.65%92.86%25.93%-61.76%476.92%-188.00%118.18%50.00%11.11%465.00%
Change in YoY Net Profit Growth (%)0.00%64.27%110.50%-66.93%-87.69%538.69%-664.92%306.18%-68.18%-38.89%453.89%

Growth

Compounded Sales Growth
10 Years:23%
5 Years:14%
3 Years:28%
TTM:35%
Compounded Profit Growth
10 Years:28%
5 Years:9%
3 Years:111%
TTM:472%
Stock Price CAGR
10 Years:7%
5 Years:23%
3 Years:90%
1 Year:242%
Return on Equity
10 Years:3%
5 Years:4%
3 Years:3%
Last Year:6%

Last Updated: May 25, 2024, 10:52 pm

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital18181821212222222225323232
Reserves4905635748729871,0231,0501,1181,0051,1151,2941,3131,346
Borrowings711021021073353245225877607797109841,089
Other Liabilities4893853243485214546579791,0987236261,011986
Total Liabilities1,0681,0671,0181,3481,8651,8232,2512,7062,8872,6422,6623,3403,453
Fixed Assets103113160206228246344365409378361367373
CWIP375548542510442916
Investments3133193176105445022531431001287192110
Other Assets6155804925271,0881,0731,6472,1892,3752,1322,2272,8722,954
Total Assets1,0681,0671,0181,3481,8651,8232,2512,7062,8872,6422,6623,3403,453

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 128575441-65-23-208-45424024-106
Cash from Investing Activity -71-29-38-332666316345-96-2322-73
Cash from Financing Activity -58-2-312828-5251-660-11-12154
Net Cash Flow-026-15-910-116-66633-25

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow23.00-84.00-87.00-284.00-266.00-461.00-420.00-603.00-659.00-573.00-842.00-369.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days10399157125140138219160128132115110
Inventory Days2181762843291589814012716196120153
Days Payable268171275253153105159157166133104128
Cash Conversion Cycle5410416520114513120013012395131135
Working Capital Days5472125115159166311259251287293238
ROCE %25%22%3%2%5%5%6%9%8%6%7%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters56.55%56.55%56.55%58.33%58.35%58.35%58.35%58.38%58.70%58.70%58.70%50.16%
FIIs3.34%3.21%3.29%2.66%1.82%1.56%1.72%1.79%1.89%2.15%2.30%9.57%
DIIs8.95%8.42%8.42%8.34%8.18%7.77%7.69%7.07%7.00%6.71%6.14%8.80%
Public31.16%31.82%31.74%30.67%31.65%32.32%32.24%32.76%32.42%32.44%32.86%31.46%
No. of Shareholders86,73886,17988,72195,69793,24399,30097,6921,16,3681,14,5201,18,0741,55,1031,91,870

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India Small Cap Fund11,408,7830.45195.26
HDFC Balanced Advantage Fund - Regular Plan10,709,0250.25183.29
LIC MF Large & Mid Cap Fund1,493,3761.0325.56
LIC MF Multi Cap Fund821,3101.7314.06
LIC MF Infrastructure Fund335,6863.655.75
LIC MF Small Cap Fund328,0552.95.61
LIC MF Balanced Advantage Fund168,9090.32.89

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue1.001.001.001.001.00
Basic EPS (Rs.)0.810.750.62-2.883.43
Diluted EPS (Rs.)0.810.750.62-2.883.35
Cash EPS (Rs.)1.451.501.64-1.474.63
Book Value[Excl.RevalReserv]/Share (Rs.)42.0441.2745.5045.6851.73
Book Value[Incl.RevalReserv]/Share (Rs.)43.1841.2745.5045.6851.73
Revenue From Operations / Share (Rs.)69.7050.3867.4681.4684.44
PBDIT / Share (Rs.)5.345.055.748.038.42
PBIT / Share (Rs.)4.243.934.256.437.10
PBT / Share (Rs.)0.630.820.13-4.543.90
Net Profit / Share (Rs.)0.350.370.14-3.073.31
NP After MI And SOA / Share (Rs.)0.800.630.56-2.883.43
PBDIT Margin (%)7.6510.028.519.859.97
PBIT Margin (%)6.087.806.297.888.40
PBT Margin (%)0.901.620.19-5.564.61
Net Profit Margin (%)0.510.750.21-3.773.91
NP After MI And SOA Margin (%)1.161.260.83-3.534.05
Return on Networth / Equity (%)1.921.541.24-6.316.62
Return on Capital Employeed (%)8.258.358.1511.4111.14
Return On Assets (%)0.760.760.53-2.242.80
Long Term Debt / Equity (X)0.120.040.030.050.04
Total Debt / Equity (X)0.720.530.660.720.50
Asset Turnover Ratio (%)0.740.610.610.650.75
Current Ratio (X)1.591.841.521.401.67
Quick Ratio (X)1.201.531.291.071.32
Inventory Turnover Ratio (X)3.353.332.392.653.68
Dividend Payout Ratio (NP) (%)12.3612.2115.87-12.137.29
Dividend Payout Ratio (CP) (%)5.254.434.35-27.385.26
Earning Retention Ratio (%)87.6487.7984.13112.1392.71
Cash Earning Retention Ratio (%)94.7595.5795.65127.3894.74
Interest Coverage Ratio (X)1.481.621.401.872.63
Interest Coverage Ratio (Post Tax) (X)1.101.121.031.842.03
Enterprise Value (Cr.)2161.221863.031324.781103.462045.40
EV / Net Operating Revenue (X)0.961.150.780.601.10
EV / EBITDA (X)12.5811.459.226.1111.04
MarketCap / Net Operating Revenue (X)0.600.820.390.230.81
Retention Ratios (%)87.6387.7884.12112.1392.70
Price / BV (X)1.011.010.580.421.33
Price / Net Operating Revenue (X)0.600.820.390.230.81
EarningsYield0.010.010.02-0.140.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: ₹254.39

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 29.79% compared to the current price ₹196

Intrinsic Value: ₹360.69

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 84.02% compared to the current price ₹196

Last 5 Year EPS CAGR: 41.79%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (1,113.33 cr) compared to borrowings (495.25 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (143.83 cr) and profit (42.75 cr) over the years.
  1. The stock has a low average ROCE of 8.75%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 194.17, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 134.50, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Texmaco Rail & Engineering Ltd:
    1. Net Profit Margin: 0.51%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.25% (Industry Average ROCE: 18.58%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 1.92% (Industry Average ROE: 14.3%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.10
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.20
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 69.5 (Industry average Stock P/E: 38.42)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.72
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company

Texmaco Rail & Engineering Ltd. is a Public Limited Listed company incorporated on 25/06/1998 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L29261WB1998PLC087404 and registration number is 087404. Currently Company is involved in the business activities of Casting of metals. Company’s Total Operating Revenue is Rs. 1621.74 Cr. and Equity Capital is Rs. 32.19 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Railway Wagons and WansBelgharia, Kolkata West Bengal 700056texmail@texmaco.in
http://www.texmaco.in
Management
NamePosition Held
Mr. S K PoddarExecutive Chairman
Mr. Indrajit MookerjeeVice Chairman & Exe.Director
Mr. A K GuptaDeputy Managing Director
Mr. D H KelaExecutive Director
Mr. A K VijayExecutive Director
Mr. D R KaarthikeyanDirector
Mr. Utsav ParekhDirector
Mr. Akshay PoddarDirector
Mr. Virendra SinhaDirector
Ms. Rusha MitraDirector
Mr. Sudipta MukherjeeDeputy Managing Director
Mr. P S BhattacharyyaDirector
Mr. Amitabha GuhaDirector

FAQ

What is the latest fair value of Texmaco Rail & Engineering Ltd?

The latest fair value of Texmaco Rail & Engineering Ltd is ₹254.39.

What is the Market Cap of Texmaco Rail & Engineering Ltd?

The Market Cap of Texmaco Rail & Engineering Ltd is 7,828 Cr..

What is the current Stock Price of Texmaco Rail & Engineering Ltd as on 30 May 2024?

The current stock price of Texmaco Rail & Engineering Ltd as on 30 May 2024 is ₹196.

What is the High / Low of Texmaco Rail & Engineering Ltd stocks in FY 2024?

In FY 2024, the High / Low of Texmaco Rail & Engineering Ltd stocks is 232/54.0.

What is the Stock P/E of Texmaco Rail & Engineering Ltd?

The Stock P/E of Texmaco Rail & Engineering Ltd is 69.5.

What is the Book Value of Texmaco Rail & Engineering Ltd?

The Book Value of Texmaco Rail & Engineering Ltd is 62.2.

What is the Dividend Yield of Texmaco Rail & Engineering Ltd?

The Dividend Yield of Texmaco Rail & Engineering Ltd is 0.08 %.

What is the ROCE of Texmaco Rail & Engineering Ltd?

The ROCE of Texmaco Rail & Engineering Ltd is 11.4 %.

What is the ROE of Texmaco Rail & Engineering Ltd?

The ROE of Texmaco Rail & Engineering Ltd is 5.88 %.

What is the Face Value of Texmaco Rail & Engineering Ltd?

The Face Value of Texmaco Rail & Engineering Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Texmaco Rail & Engineering Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE