Texmaco Rail & Engineering Limited

Industrials — Railroads · NSE

₹112.50−₹0.39 (−0.35%)

DalalBaazaar Score

65 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Texmaco Rail & Engineering Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Texmaco Rail & Engineering Limited manufactures, sells, and provides services for rail and rail related products in India. It operates through four segments: Freight Car Division, Infra Rail & Green Energy, Infra Electrical, and Real Estate.

IndustryRailroads

SectorIndustrials

Employees1,879

Annual revenue₹4,359 Cr

How does it make money?

Turns over ₹4,359 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 1,879 employees supports ₹2.32 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.6%

Net margin4.5%

Revenue / employee₹2.32 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Little sign of one

Returns on capital of 13.4% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE13.4%

ROE8.2%

Peer median ROE15.2%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 23.3% and earnings to grow about 33.1% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+23.3%

Est. earnings growth+33.1%

Analysts3

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +96% while net margin moved +283% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+96%

Margin effect+283%

DalalBaazaar Score

65/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.65 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

77/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

21.1x

3Y Median

48.3x

40 monthly readings · mean 91.9x · range 12.7x–331.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 56% below its 3y median of 48.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 76% below the peer median of 88.8x.

vs. its own history

Cheap

48.3x median over 40 months · -56%

vs. sector peers

Cheap

88.8x median of 3 peers · -76%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

21.1x

P/B

1.92x

EV/EBITDA

12.9x

PEG

0.22

Dividend Yield

0.67%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 7.6% to 9.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 1.9% to 8.2%.
Return on capital is rising
ROCE has improved from 6.5% to 13.4%.
Valuation below its historical average
At 21.1x the stock trades 56% below its own median of 48.3x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 26% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.6% to 9.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 56% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹196 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 19% a year✓ 25.1% CAGR
Latest reported year was -16.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✓ 3.8x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹196 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹4,577 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.92x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.33

Profitable

Profitable on a per-share basis

ROE

8.2%

Moderate

Moderate capital efficiency

ROCE

13.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.37x

Low

Conservative leverage

Revenue Growth (YoY)

-16.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

68.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.67%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹196 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹112.5

P/E (Forward)

16.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.9%

Average

Average margins

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.65

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

118.3 / 113.3

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,225 Cr	₹3,489 Cr	₹5,072 Cr	₹4,359 Cr	+25.1%
EBITDA	₹168 Cr	₹312 Cr	₹521 Cr	₹418 Cr	+35.4%
EBITDA Margin	7.6%	8.9%	10.3%	9.6%	—
PAT (Net Profit)	₹26 Cr	₹113 Cr	₹249 Cr	₹195 Cr	+95.7%
EPS	₹0.81	₹3.29	₹6.21	₹4.84	+81.5%
ROE	1.9%	4.5%	8.9%	8.2%	—
ROCE	6.5%	9.5%	14.4%	13.4%	—
Total Debt	₹984 Cr	₹631 Cr	₹948 Cr	₹895 Cr	-3.1%
Free Cash Flow	-₹156 Cr	₹14 Cr	-₹579 Cr	₹196 Cr	—

🟢 Revenue has grown at 25.1% a year over 3 years.

🟢 EBITDA has grown at 35.4% a year over 3 years.

🟢 EBITDA Margin has risen from 7.6% to 9.6% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 95.7% a year over 3 years.

🟢 EPS has grown at 81.5% a year over 3 years.

🟢 ROE has risen from 1.9% to 8.2% over 3 years (+6.4 pts).

🟢 ROCE has risen from 6.5% to 13.4% over 3 years (+6.8 pts).

🟢 Total Debt has shrunk at 3.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹156 Cr to ₹196 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹5,054 Cr

Total Liabilities

₹2,642 Cr

Total Debt

₹895 Cr

Cash & Equivalents

₹90 Cr

Operating Cash Flow

₹363 Cr

Capex

-₹167 Cr

Shareholding (proxy)

Institutional Holding

9.1%

Insider Holding

48.5%

Corporate Actions

Dividend Rate

₹0.75

Ex-Dividend Date

11 Sept 2026

Analyst Consensus

Recommendations

2 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹137.33

+22.1% vs CMP

Target Range

₹114 – ₹149

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 mixed4 general

Texmaco Rail Wins Rs 28.58 Cr Wagon Order

scanx.trade, 13 Oct

Texmaco Rail & Engineering (NSEI:TEXRAIL) Stock Forecast & Analyst Predictions

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

60% rally in FY27! Ventura Securities sees 32% more upside in short term | Technical outlook, target, stoploss

Livemint, 25 Sept

Texmaco Rail & Engineering Share Price News and Analysis

Univest, 01 Oct

Texmaco Rail share price fall 3% on mixed Q1 earnings

Moneycontrol.com, 04 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Texmaco Rail Share Price Reversal and Chart Outlook

Kalkine India, 05 Oct

Watch Items

Revenue growth is negative (-16.9%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟢Financial HealthStrong16.3/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive10.7/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

This thesis breaks if

✓Revenue growth stays above 19% a year25.1% CAGR
✓EBITDA margin holds above 8%9.6%
✗Debt / EBITDA stays below 2x2.1x
✓Interest cover stays above 3x3.8x
✓Free cash flow remains positive₹196 Cr