Expect Texmaco Rail to hit Rs 165 till Budget: Tater

Aashish Tater of fortunewizard.com told CNBC-TV18, "We feel anything that happens good for railways will definitely benefit the Texmaco group. From the visibility front, before Budget, railways stocks tend to run 40-50 percent higher and then eventually correct if Budget disappoints. This time we expect that Suresh Prabhu will definitely guide for a better future for railways and the order flows that will be executed will be much more then what they have been doing for last four years." "What we feel is that there will be multi-fold jump in terms of topline and that will translate into bottomline into very high margin. So, the entire scenario that we are looking right now will change drastically. This is one sector that we feel will do exceptionally well over next two to three years. Let us see how Budget actually shapes up and by then we expect a target of Rs 165 on Texmaco Rail and Engineering and then we will take a longer term picture," he said."The joint venture with French company for the leasing business and now they have entered into the first prototype which has been delivered even for the defence side on the rake front. So, there are lot of development that has happened which is not being reflected because right now the size of operation is very low compared to the capacity utilisation they have. So, eventually when larger orders flow in, they will have the capacity build in." "With the Kalindee Rail been taken into Texmaco group, I think this is one stock that will definitely benefit with new orders being released. So, we feel that it is a good stock from Budget perspective and even after that if Budget is what we expect for the railways to be, the stock can be re-rated multiple times. So, a target of Rs 165 till Budget and after that we will see whether it is Rs 251 or even higher depending on what Suresh Prabhu delivers on Budget front."