Tit - bits

#The bounce back which commenced on Wednesday post forming of a Bullish Harami Candlestick Pattern, is likely to provide further ammunition to the bulls in the coming days. Keep accumulating good stock on dips. This week the rally is expected to be broad-based.
Meanwhile, foreign institutional investors (FIIs) bought shares worth Rs.115.7 crore, while domestic institutional investors (DIIs), too, bought shares of worth Rs.384.92 crore in the Indian equity market on December 13, provisional data available on the NSE showed.

Photo: India Today

#The Indian Railway related shares are expected to outperform in the run up to the Union and Railway Budget which in all likelihood is tentative on February 1, 2020.  According to a Gujarat based weekly,  the NDA goverment has invited bids for 450 trains, which more work for wagon manufacturers. 

This news is therefore music for the shareholders of Tiagarh Wagons (Rs.46.20) and Texmaco Rail and Engineering (Rs.34.05). The shares of both these companies are likely to soar in the coming days. Both are safe scrips at their CMPs. 

Texmaco’s wagon vertical ended Q1FY20 with an order book of Rs 11.7 bn (Rs 12.1 bn at FY19-end). Traction in private sector wagon ordering sustained with the company winning Rs 1.1 bn worth of orders (Rs 5.6 bn in FY19). Management indicated that it is evincing good demand for container wagons and for those carrying coal and automobile. 

Edelweiss maintains a ‘Buy’ with revised SOTP-based target price of Rs.69 (Rs.102 earlier) as they roll forward the valuation to December 2020E.

Titagarh Wagons has an order book of Rs.5,200 crore.
Texmaco Rail & Engineering is one of India’s leading freight car manufacturers and diversified engineering company. The company is the largest supplier of wagons to the Indian Railways in India with strong in-house capabilities for the design and manufacture of special purpose wagons.
Moreover,  the Capital Issue committee of Texmaco Rail & Engineering at its meeting held on 13 September 2019 has approved related to the right issue of equity shares of the company of face value of Re 1 each -

• Issue size - up to Rs 200 crore
• Issue price - Rs.46.70 per share

Texmaco Rail & Engineering Ltd has five manufacturing units extending over 170 acres in the outskirts of Kolkata.
Moreover,  the construction of the Eastern and the Western Dedicated Freight Corridors will lead freight volumes to more than double to 2,165 mt by FY2020.
In May, this year,  there were media reports that despite prolonged delays in delivery of freight wagons by private manufacturers, the Railway Board has placed an additional order for 9,468 wagons costing ₹2,635 crore.
The backlog, according to that Business Line news report was as high as 25,000 units, which will take at least another couple of years to be cleared.