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Company Overview:
The private wagon manufacturer for Indian Railways has recently hit a new 52-week high. The company is specialized in delivering a diverse range of products, including wagons, accessories, commercial electric vehicles, and track solutions. It is planning to diversify the production with train coaches and metro coaches. Currently serving Indian Railways, the company has also garnered a diverse clientele, including major players such as Adani Ports, Tata Motors, Reliance, and JSW Steel.
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Fundamental Analysis:
When it comes to the company’s financials, Jupiter Wagons reported a 228% year-on-year (YoY) growth in its net profit to ₹82 crore in the September quarter. Its revenue grew by 11% YoY to ₹82 crore in the same quarter. More than 70% of its revenue is generated from Indian Railways. The company has also delivered good profit growth of 40.0% CAGR over the last five years.
The company’s current order book stands between ₹4,000 to ₹5,000 crore. (This is subject to change in Q3 updates.) The company currently manufacture 700 wagons per month. It plans to increase production to 800 wagons by the end of FY24 and 1000 wagons per month by FY25.
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Technical Analysis:
Jupiter Wagons’ share price is trading near its recent high of 361.9. However, there has been a slight profit booking, leading to the formation of an inverted hammer on the chart. The RSI is at 63, and the MACD has crossed over the zero line from below. Over the last five trading sessions, there has been a decrease in volumes.
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Latest News:
In recent developments, Jupiter Wagons secured an order worth ₹100 crore on 5 January under the Atmanirbhar Bharat initiative. The order involves supplying four rakes of double-decker Automobile Carrier Wagons; the client’s identity remained undisclosed. Notably, the company had previously signed a contract worth ₹1617 crore with the Indian Railway Board on 14 December to manufacture and supply 4000 Bogie Open Wagons.
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Future Trends:
Jupiter Wagons seems well-poised for growth, with plans to expand its product offerings and increase wagon production. The company’s strategic positioning and diverse clientele suggest a positive trajectory for future trends. However, the competitive landscape, including rivals like Titagarh, Thermax, and Elecon Eng, introduces an element of anticipation. Will Jupiter Wagons outshine its competitors in the upcoming years?
Tell us in the comments below 👇🏻
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