While high expectations are driving investors to these stocks, it is crucial the next quarterly results reflect signs of an earnings recovery. Poor financial performance notwithstanding, investors in shares of wagon manufacturers continue to ride on hopes of an imminent turnaround. Stocks of Texmaco Rail and Engineering Ltd and Titagarh Wagons Ltd gained about 25% each after their September quarter results even as their performances provided no clear signs of an earnings recovery. The latest surge in share prices are triggered by hopes of a release of a large order for wagons by Indian Railways. While high expectations are driving investors to these stocks, it is crucial the next quarterly results reflect signs of an earnings recovery.

Source: Mint November 29, 2017 02:03 UTC