Texmaco Rail And Engineering Ltd. received an order worth Rs 535 crore from Cameroon-based Camalco SA, according to an exchange filing on Wednesday.
The order is for the manufacture and supply of wagons, with an initial order for 560 open top wagons. This is to be completed in two phases within 24 months from its purchase order date.
There is a provision in the contract for an additional order of 1,040 wagons in subsequent phases in the next five years.
The company has also undertaken a long term maintenance contract for wagons supplied for a period of 20 years.
The initial order is worth Rs 282 crore and the long term maintenance contract is worth Rs 253 crore.
Shares of Texmaco Rail And Engineering closed 4.44% higher at Rs 173.39 apiece on the NSE, compared to a 0.8% rise in the benchmark Nifty 50. The stock has fallen 19.01% in the last 12 months and 10.52% on a year-to-date basis.
All four analysts tracking the company have a ‘buy’ rating on the stock, according to Bloomberg data. The average of 12-month analysts’ price target implies a potential upside of 33%.
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