Why Texmaco Infra Share Price is Rising

Imagine the scorching summer sun, relentless and draining. Suddenly, the sky darkens, a cool breeze whispers, and the first fat raindrops plop onto the dusty ground.

Relief washes over you as the air fills with the earthy scent of petrichor. The oppressive heat surrenders to a refreshing chill.

Just like that one downpour can transform a parched landscape, a single piece of good news can dramatically change the fate of a stock in the stock market.

Texmaco Infra's story is nice example of this. Since February 2024, its share price had been in a predictable pattern, neither soaring nor plummeting. But things took a dramatic turn last month.

The company's share price received a boost when it declared its Q4 financial results. In the last month it rallied 15.4%.

How did the stock perform in FY24? Let's take a look.

Financial Performance

Texmaco Infra's recent financial results offer a mixed bag, but there are some clear signs of a strong performance.

The revenue from operations in Q4 FY24 was Rs 34.2 million (m), reflecting an 18.8% decline compared to Rs 42.1 m in Q4 FY23. Other income also saw a slight decline of 6.2%, from Rs 21 m in Q4 FY23 to Rs 19.7 m in Q4 FY24.

However, the profit after tax (PAT) for Q4 FY24 increased by a phenomenal of 945.4%. It soared from Rs 1 m in Q4 FY23 to Rs 10.7 m. The rise in net profit was aided by a tax benefit of Rs 17.8 m.

On an annual basis, the revenue from operations saw a minor decrease of 2.7%, from Rs 165.3 m in FY23 to Rs 160.8 m in FY24. In contrast, other income showed a significant growth of 10.8%, from Rs 88.3 m in the previous financial year to Rs 97.8 m in FY24.

Additionally, the PAT for FY24 exhibited a substantial increase of 28.6% over the prior year, climbing from Rs 30.8 m in FY23 to Rs 39.6 m in FY24.

This profit jump was reflected in the earnings per share (EPS) which rose to Rs 0.42 in FY24 compared to Rs 0.24 in FY23. The board of directors declared a dividend of Rs 0.15 per share.

Overall, while Texmaco Infra's revenue might not be growing fast, the company's profitability and overall financial performance show a positive trend, likely contributing to the recent surge in investor confidence.

What Next?

The growing Indian economy, expanding real estate sector, increasing investments in mini hydel power projects, and rising overall investments are set to boost Texmaco Infrastructure's business.

As the Indian economy grows, the demand for infrastructure development will rise. Texmaco Infra, with its diverse portfolio, stands to gain.

The real estate sector in India is experiencing rapid growth. Urbanisation, population growth, and increasing disposable incomes drive this growth. This necessitates infrastructure development.

The company can capitalise on new opportunities in the booming real estate market.

Investments in mini hydel power projects are also increasing. These small-scale hydroelectric projects are becoming key to India's energy strategy.

They help diversify energy sources and reduce carbon emissions. Its expertise in hydel power infrastructure allows it to tap into this growing market.

Overall investments in infrastructure projects are rising across various sectors. Both public and private investments continue to grow. It is well-positioned to secure new contracts and partnerships.

However, caution is needed. The recent trend of declining revenues for the company is a cause for concern. No matter how favorable the demand, success depends on converting demand into actual revenues.

If Texmaco Infra cannot capitalise on opportunities to generate revenue, it will struggle to achieve sustainable growth and profitability.

How Texmaco Infra Share Price has Performed Recently

In the past five days, Texmaco Infra share price has declined 0.5%. In the last month, it is up 15.4%.

In 2024, so far, its share price has rallied 29.2% and it surged 137.8% in the last year.

The stock touched its 52-week high of Rs 143.9 on 24 June 2024 and a 52-week low of Rs 56.6 on 23 June 2023.

About Texmaco Infra

Texmaco Infrastructure & Holdings, founded in 1939 as Texmaco, was as a part of KK Birla Group.

In 2010 it demerged its heavy engineering and steel foundry businesses, constituting the major part of its operations, into a separate company called Texmaco Rail & Engineering.

Texmaco Infrastructure & Holdings was consolidated under the Adventz Group banner, post-demerger of heavy engineering and steel foundry businesses, is presently concentrated in the business of real estate, mini hydel power, and investments.

The demerger of the company was with the prime objective of each constituent company being able to focus in the core areas of its respective business segments.

Currently, it is operating a Mini-Hydel at Neora, Kalimpong District West Bengal. Very soon, it's set to make its real estate foray in Delhi and Kolkata.

To know more, check out Texmaco Infra 's financial factsheet and its latest quarterly results.

For a sector overview, read our engineering sector report.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

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