Texmaco Rail & Engineering Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Texmaco Rail & Engineering Ltd trades at ₹118, in a downtrend and 85 weeks into that stage. That is +1.4% against its own 200-day average. It sits at 61% of a 52-week range of ₹84 to ₹140. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 2 straight weeks.

Today the stock is in a downtrend — week 85 of stage 4, confirmed. At ₹118 it trades +1.4% versus its 200-day average and sits at 61% of its 52-week range (₹84–₹140).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +29% while the NIFTY 500 moved +267% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 2 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Texmaco Rail & Engineering Ltd trades at 22.1× P/E, near the bottom of its own range — cheaper only 25% of the time. Its long-run median P/E is 62.0×, measured across 10.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 22.1× is near the bottom of its own range — cheaper only 25% of the time, against a long-run median of 62.0× measured over 10.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

One caveat before moving on: margins are the best this company has ever printed — cheap against its own history on record margins is not the same thing as cheap. If profitability mean-reverts, today's multiple is higher than it looks.

Why the multiple sits where it does: over the past year annual EPS moved −23.1% against a −19.8% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +31.5%/yr price move, ~+30.2%/yr came from earnings growth and ~+1.3 pp from the multiple (expanding); over 10y, of the +1.4%/yr price move, ~+37.7%/yr came from earnings growth and ~−36.3 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 13 June 2026 price, Texmaco Rail & Engineering Ltd was paying for profit growth of about 13.8% a year. Profit itself has compounded 25.5% a year over the past 10 years. Today the market pays 22.1× P/E, the 25th percentile of its own 10-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 13 June 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Texmaco Rail & Engineering Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −22.2% at the trough to −1.8% off a 1-quarter-old trough, ROCE holding at 13.1%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

4-Factor Sector Score

49.0/100 — rank 4 of 9 in Railways · 93% evidence confidence

Texmaco Rail & Engineering Ltd scores 49.0 out of 100 against the 9 companies it is compared with in Railways, ranking 4. Price leads the evidence: RS versus the benchmark is 2.5%, but earnings trajectory is weak. Wait for revenue and profit confirmation.

The four contributions add to the total exactly: 10.5 + 8.9 + 15.5 + 14.1 = 49. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Texmaco Rail & Engineering Ltd reported ₹757 Cr of revenue in the Jun 26 quarter, −16.9% year on year. Over 10 years it has compounded at 14.8% a year. The last full year, FY26, came in at ₹4,377 Cr. The last four reported quarters add to ₹4,224 Cr.

FY26 revenue came in at ₹4,377 Cr (−14.3% on the year), capping 10 years at 14.8% compound. The latest quarter (Jun 26) printed ₹757 Cr, −16.9% year on year.

Pace check: the last four quarters averaged −14.5% growth against the decade's 14.8% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew −14.3% over the last 4 quarters against +3.6%/yr over the last 8 — rolling over; TTM profit −1.8% vs +16.0%/yr — rolling over.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Texmaco Rail & Engineering Ltd's operating margin is 8.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 11 fiscal years the operating margin has ranged 4.5% to 9.0%. The current quarter sits inside that band.

The latest quarter's operating margin is 8.0%, +0.0 pp against the same quarter a year ago. Across 11 fiscal years the operating margin has ranged 4.5%–9.0%, and FY26's 9.0% is the top of that band — a record year.

🚨 Why the margin moved: operating margin went −0.3 pp year on year while gross margin went +5.1 pp — the loss came mostly from the gross line: input costs and pricing.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Texmaco Rail & Engineering Ltd earned ₹50.0 Cr of net profit in the Jun 26 quarter, +72.4% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹194 Cr. The 10-year compound rate is 25.5%. That is 6.6% of the quarter's revenue. The same quarter a year earlier earned ₹29.0 Cr.

Jun 26 profit was ₹50.0 Cr, +72.4% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹194 Cr (−22.1%), and the 10-year compound rate is 25.5%.

Why profit moved: revenue contributed −16.9% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +15.7% vs revenue −14.5%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 74% of Texmaco Rail & Engineering Ltd's reported profit arrived as operating cash — most of the profit is real cash. In FY26 that was ₹363 Cr of operating cash against ₹194 Cr of profit. After ₹176 Cr of capital spending, ₹187 Cr was left as free cash.

FY26: operating cash of ₹363 Cr against reported profit of ₹194 Cr, leaving free cash of ₹187 Cr after ₹176 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 74% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 74%: the cash cycle stretched 38 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: conversion is below par and the cash cycle has stretched 38 days — the next section's job is to find where the cash is stuck.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Texmaco Rail & Engineering Ltd's cash conversion cycle runs 133 days in FY26, up from 95 days in FY21. Capital spending ran ₹876 Cr over the last 3 years. At FY26 sales of ₹4,377 Cr each day of that cycle holds about ₹12.0 Cr, so roughly ₹1,595 Cr sits inside the business at any moment.

FY26: debtors at 104 days, inventory at 95 days — roughly 3.1 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 133 days, looser than FY21's 95.

The full loop: cash goes out to suppliers and production on day 0; stock waits 95 days to sell; customers pay about 104 days after that; and suppliers themselves are paid at 66 days — netting out to the 133-day cycle.

In money terms: at FY26 sales of ₹4,377 Cr, each day of the cycle holds about ₹12.0 Cr — so the 133-day loop keeps roughly ₹1,595 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹876 Cr over the last 3 fiscal years against ₹128 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹165 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the working-capital loop is the cash sink the router flagged — watch the cycle, not the P&L.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Texmaco Rail & Engineering Ltd earns a ROCE of 11% in FY26. That is up from a trough of 6% in FY17. Return on invested capital clears the cost of that capital by −3.4 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is 4.4% net margin on 0.87× asset turns.

FY26 ROCE is 11%, recovered from a FY17 trough of 6% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): 4.4% net margin × 0.87× asset turns × 2.13× balance-sheet leverage ≈ 8.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 8.6% − 12.0% = a −3.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Texmaco Rail & Engineering Ltd carries total debt of ₹895 Cr against shareholder equity of ₹2,412 Cr as of Mar 26, a debt-to-equity of 0.37. On the annual view that ratio went from 0.53 in FY22 to 0.37 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹895 Cr against shareholder equity of ₹2,412 Cr — a debt-to-equity of 0.37. On the annual view, debt-to-equity went from 0.53 (FY22) to 0.37 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 4.1 points of Texmaco Rail & Engineering Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 5.0% of the company. Domestic institutions moved −3.8 points over the same window, to 5.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −4.1 points over 8 quarters to 5.0%; Domestic institutions: −3.8 points over 8 quarters to 5.1%; Promoters: +0.2 points over 8 quarters to 48.3%.

🚨 Why the register moved: foreign institutions drove it (−4.1 points), alongside domestic institutions (−3.8 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Texmaco Rail & Engineering Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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