This railway stock has surged 49% from March low; zoomed 312% in 1 year

Jupiter Wagons hit a record high of Rs 448, rallied 10% on the BSE in Thursday's intra-day trade after reported a solid performance with PAT jumped 156%t to Rs 104 crore in March quarter.

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Shares of Jupiter Wagons (JWL) hit a record high of Rs 448, as they rallied 10 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes after the company reported a solid performance with profit after tax (PAT) rose 156 per cent to Rs 104.22 crore in March quarter (Q4FY24).

The company, a provider of comprehensive mobility solutions encompassing rail, road and marine transportation, had posted PAT of Rs 40.78 crore in Q4FY23.

The stock surpassed its previous high of Rs 442.15 touched on April 25, 2024.

At 10:11 am; JWL was trading 9 per cent higher at Rs 446.20, as compared to 0.36 per cent decline in the S&P BSE Sensex.

A combined 7.6 million equity shares have changed hands on the NSE and BSE. The stock has recovered 49 per cent from its March low of Rs 407.85. In the past one year, it zoomed 312 per cent, as against 18.5 per cent rise in the benchmark index.

JWL’s total income during the quarter review grew 57 per cent year-on-year (YoY) to Rs 1,121 crore, from Rs 712.71 crore in the same quarter a year ago.

The company said it continued to deliver industry-leading margin as earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin improved to 13.3 per cent in Q4FY24, from 13.1 per cent in Q4FY23.

As on Q4FY24, JWL’s order book position stood at Rs 7,101.66 crore. During the reported quarter, the company secured a contract from the Ministry of Railways for the manufacturing and supply of 2,237 BOSM Wagons aggregating to around Rs 957 crore.

The company also secured a contract with the Ministry of Defense for the manufacturing and supply of 697 Boggie Open Military (BOM) Wagons. This significant agreement holds a value of around Rs 473 crore, the company said.

The management said, the new contract wins this quarter from the Ministry of Defense, a prominent automobile manufacturer, and the Ministry of Railways for manufacturing and supplying various types of wagons coupled with the existing order backlog provide strong visibility.

Jupiter remains an industry leader in private wagon suppliers. The outlook for FY25 is further enhanced by the impending launch of our e-LCVs and the plan to scale up the brake systems and braking businesses, the management said.

Going forward, successful tender bids and steady & healthy inflow of orders is crucial for sustaining scale of operations and for optimum capacity utilizations while increase in production capacity, according to analyst.

JWL is a provider of comprehensive mobility solutions, with diverse offerings across freight wagons, locomotives, passenger coaches (LHB), braking systems, metro coach, commercial vehicles, ISO marine containers, and products such as couplers, draft gears, bogies, and CMS crossings.

JWL is one of India’s largest wagon manufacturers, with a capacity of 9,600 wagons per annum with plans to enhance capacity to 12,000 wagons per annum by Q1 fiscal 2025.

Over the years, it has gained significant experience and has established strong relationships with government and private customers in iron & steel, power, logistics, mining, cement sectors and other reputed OEMs resulting in steady order inflow. Technology tie ups and partnerships with global entities have strengthened JWLs technical know-how and capabilities. This has resulted in a wide product portfolio and diversification from core wagon manufacturing business.

CRISIL Ratings believes JWL will continue to benefit from extensive experience of its promoters, its established market position, technology tie-ups and partnerships and continuous backward integration.