On Friday, shares of India’s leading railway freight car manufacturer jumped 4 percent to Rs 345.15 per share after the company received an order from the Ministry of Defence for a value of Rs 473 crores.
At 11.05 a.m, Jupiter Wagon Ltd was quoted at Rs 340.85 per share, up 2.79 percent on the National Stock Exchange. The company has a market capitalization of Rs 14,053 crore.
The company received a significant Defence Contract to supply 697 Boggie Open Military (BOM) Wagons from the Ministry of Defence for a value of Rs 473 crores. The company reported in its exchange filing.
Jupiter Wagons shares have gained 89 percent in the last six months and 242 percent return in one year. A shareholder investment of Rs 1 lakh in the company, would be worth Rs 3.42 lakhs.
Jupiter Wagons Limited is an Indian private manufacturer of railway wagons, passenger coaches, wagon components, and castings. The company is engaged in the business of manufacturing vehicle bodies for commercial vehicles and the production of Fully Built Vehicles (“FBVs”).
The company’s revenues have increased by 110 percent year on year from Rs 417 crore in Q2FY23 to Rs 879 crore in Q2FY24, while net profit has jumped by 228 percent from Rs 25 crore to Rs 82 crore.
The company has planned to increase its existing foundry at the Kolkata Unit from 2,500 metric tonnes to 3,000 metric tonnes by the conclusion of this fiscal year. while the company order book stands at Rs.5,952 Crores.
In Q2 FY2024 Jupiter Wagon’s EBITDA margin improved by 13.8%, by 180 basis points and the company is ramping up to around Rs.150 Crores next year with export market contribution.
The company’s new foundry is scheduled to be established in Jabalpur over the next 18 months with a capacity of 2,000 tonnes, catering to both captive use and exports. This initiative is expected to yield cost savings in freight expense
The company’s wagon manufacturing capacity has been increased to 700 wagons per month at present. Once the company expands its foundry capacity, it is expected that production capacity will increase to 800 wagons per month.
Written by Omkar Chitnis
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