HDFC Mutual fund and foreign institutional investors (FII) have reduced their ownership in Texmaco Rail and Engineering, according to the latest shareholding data.

What Happened: Texmaco Rail and Engineering's shareholding data for the June quarter shows FIIs reduced their stake in the company. FIIs reduced their stake in the railway company to 9.09% from 11.05% in the March quarter. 

BofA Securities Europe SA ODI reduced its stake to 1.25% from 1.94% in the previous quarter while Abu Dhabi Investment Authority-Monsoon trimmed stake to 1.05% from 2.07%. 

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Although mutual funds overall increased their ownership, HDFC Mutual Fund sold some shares by the June quarter. Overall mutual fund ownership in the stock increased to 7.52% from 6.86% in the March quarter.

HDFC Balanced Advantage Fund slashed its stake to 1.83% from 2.5% in the March quarter. Nippon Small Cap fund's ownership remained unchanged at 2.86% and LIC Large and Midcap fund increased its stake to 1.13% from less than 1% in the previous quarter. 

In July, Nuvama Institutional Equities initiated coverage on the stock with a "buy" call and target price of ₹331. The brokerage sees the company hitting its projected profit numbers on the back of Increasing railway capex, strong wagon ordering and net cash balance. 

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