Shares of Texmaco Rail and Engineering Ltd rallied 5% on 22 February after the company announced its plans to deliver 3,400 rail wagon orders during the first quarter of the next fiscal year on the back of a healthy future order book position.

Indrajit Mookerjee, Executive Director and Vice Chairman of Texmaco Rail, said, “I think we are expecting a bullish market as there are lots of pending demands. I have also said earlier that many of the demands were not met in the previous years, so some orders are piling up. The future order book position will remain healthy. The new orders will be both from Indian Railway as well as from the private freight car owners.”

As of December 2023, the company’s freight car order book stands at Rs 5,700 crore.

Mookerjee added that the company expects more orders and tenders from the Indian Railways, but they are also confident of the demand pool from the private sector as the country needs more freight cars for transportation of essential goods, so the company expects requirements from both segments.

The company’s production capacity has increased by over 400%, which was led by better engineering practices, efficient management of factories, and streamlining its activities.

The company has two manufacturing facilities, one fully loaded, while more production can be achieved from the other.

The company has a manufacturing capacity of around 800 wagons per month, a significant increase from 250 wagons a couple of years ago. Their target is to produce 1,000 wagons per month, which will be achieved in a period of a month or two.

At 3:30 pm, the shares of Texmaco Rail closed 4.69% higher at Rs 191 on NSE.