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Jupiter Wagons rallied 4.4 per cent to hit a high of Rs 348.35 in intra-day deals on the BSE after the company announced acqusition of Bonatrans India for Rs 271 crore.
At 01:05 pm, the stock was trading 2.8 per cent higher at Rs 343 on volumes of around 87,000 shares on the BSE. Meanwhile, the S&P BSE Sensex was up 0.7 per cent at 72,638.
Jupiter Wagons (JWL) in a press release said, the acquistion of Bonatrans India marks a significant milestone for the company and positions it as the first rolling stock manufacturing to have its own wheel plant.
Bonatrans situated in Aurangabad, Maharashtra, stands as a distinguished manufacturer of rolling stock wheelsets. With a production capacity of 20,000 Wheels and 10,000 Axles annually, the acquisition promises to bolster JWL's self-reliance and operational efficiency while reducing dependency on imported wheels, the release added.
Apart from JWL, BEML, Alstom Rail Transportation India, Plasser India and Titagarh Rail Systems are few of the existing clients of Bonatrans.
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Commenting on the occasion, Vivek Lohia, Managing Director of JWL said, "With this acquisition the company is poised to meet the evolving needs of the Indian railway sector while making significant strides in the global market. This move underscores JWL's unwavering dedication to innovation, efficiency, and customer satisfaction.”
As part of the Make in India initiative, JWL is poised to invest an additional Rs 1,000 crore over the next two years. These investments will enhance production capacity and drive the plant towards full backward integration. The ultimate goal is to cater to the burgeoning needs of the Indian railway sector, with aspirations to transform it into an export hub, leveraging JWL’s existing esteemed partners, the release added.
For the quarter ended December 2023, JWL had reported a sharp 79.7 per cent growth in net profit at Rs 8.34 crore when compared with Rs 4.64 crore posted in the corresponding quarter a year ago. Revenue rose 39 per cent year-on-year to Rs 89.58 crore from Rs 64.44 crore in the same period.
