On Thursday, shares of India’s leading railway freight car manufacturer jumped 9.5 percent to ₹ 396.50 after receiving a ₹ 956 crore order from the Ministry of Railways.
At 10:45 a.m., Jupiter Wagons Ltd shares were trading at ₹379 a share,a 4.93 percent increase over the previous close price. The company is valued at ₹15,735 crore on the stock exchange.
According to the company exchange filing, the company received an order from the Ministry of Railways to manufacture and supply 2,237 BOSM Wagons for a contract value of ₹ 956.87 crores.
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 has experienced a 39 percent year-on-year increase in revenues, rising from ₹644 crore in Q3FY23 to ₹896 crore in Q3FY24. Additionally, the net profit has surged by 80 percent, growing from ₹46 crore to ₹83 crore.
In the December quarter, the company’s EBITDA margin improved to 13.6% in 9M FY24 from 11.9% in 9M FY23. During the same quarter, the company secured a substantial order worth ₹100 crore from a prominent automobile manufacturer for the manufacturing and supply of four rakes of Double Decker Automobile Carrier Wagons.
Recently, Jupiter Wagons raised ₹ 403 crores via a Qualified Institutional Placement (QIP) by issuing 1,28,06,595 new equity shares to qualified institutional buyers. such as Tata MF and HSBC MF, along with the Bandhan Equity Fund. Additionally, FII participants like Societe Generale and Copthall Mauritius Investment Limited.
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 around 700 wagons per month at present. Once the expanded capacity of the foundry is made available, it is expected that production capacity will increase to 800 wagons per month.
Jupiter Wagons Ltd shares gained 20 percent on year to date basis and a multibagger return of 272 percent in a year. A shareholder investment of ₹ 1 lakh in the company, would be worth ₹ 372 lakhs in a year.
Written by Omkar Chitnis
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