Nuvama Institutional Equities maintained a bullish view on Texmaco Rail over the government's increased focus on rolling stock.

What The Brokerage Said: Nuvama maintained a "buy" call on Texmaco with a target price of ₹331, indicating an upside of 35% from the previous day's closing price. The research firm said the potential demerger of its rail engineering, procuring and construction business can be a key re-rating trigger for the stock. 

Earlier this week, the company reported a 183% increase in net profit to ₹35.73 crore. The company's revenue was up around 36% to ₹891.71 crore.

The company's freight car segment which contributes a major part of the topline saw an increase of 38% to ₹733.59 crore. The company's order book fell slightly to ₹7,459.7 crore from ₹7,900 crore in March. 

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Nuvama said the company's wagon orders contributed 60% of the company's order book and private wagons contributed 12% to its wagon order book. Indian Railways has awarded 6,900 wagons year to date in FY25 and has more wagon tenders in the pipeline, the brokerage said. 

The company's planned acquisition of Jindal Rail Infrastructure will help the company expand its strength in the wagon vertical, the research firm added. The company currently has more cash than debt and even after the acquisition, the company will enjoy healthy leverage positions, the brokerage said. 

Price Action: Shares of Texmaco Rail shot up 3% to an intraday high of ₹252.85 on Friday. 

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