Multibegger

Texmaco is engaged in making Railway Freight Cars, Hydro mechanical equipments & Steel strutures, Process equipment, Agro machinery and Steel foundry.
Company posted good results for FY08. PBT is Rs. 100 crores and PAT is Rs. 69.50 crores with an EPS of Rs. 62.25.
The company has strong order book. The company has signed an MoA with United Group Rail Services Ltd. of Australia. It also received an order of Rs. 296 crore from NHPC and order of Rs 187 crores from Indian Railways.
The company presently has a debt of about Rs. 40 crores which makes it almost debt free. It is a regular dividend paying company with RoNW @ 28.7% for the last year. Company has a decent book value of Rs. 205.
The stock has 52 week high and low of Rs. 1966 and Rs. 830 respectively. The stock is going to split from a face value of 10 to 1 after which the stock may show some run up.
We expect a tgt of Rs. 110 post split which gives return of about 33%. Investors with mild risk appetite may go for the scrip with short term as well as long term outlook.