Shares of Jupiter Wagons rose two percent in the morning on June 12 after the National Company Law Tribunal (NCLT) approved the Kolkata-headquartered coach manufacturer's resolution plan to buy a controlling stake in Stone India.
At 9:17 am, the railway wagon maker's stock was quoting at Rs 135.35, up 1.61 percent. The stock was trading a tad away from its 52-week high of Rs 139.55.
The NCLT Bench in Kolkata on June 8 approved the resolution plan submitted by Jupiter Wagons for acquiring a controlling stake in Stone India under the Corporate Insolvency Resolution Process, the company said in an exchange filing.
As per the resolution plan, Stone India shall become a subsidiary of Jupiter Wagons, the company added.
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Strong growth prospects and an attractive valuation of 17.4 times and 12.8 times its FY24 and FY25 EPS make Jupiter Wagons an emerging play in small cap capital goods space, Sharekhan said.
The company is transforming itself into a consistent growth play by revamping strategies such as enhancing wagon manufacturing capacities, strengthening its position in wagon accessories by launching new products and expanding into the fast-growing category of light electric commercial vehicles, the brokerage firm added.
Sharekhan sees return profile improving substantially with an expectation that Return on Equity and Return on Capital Employed will be at 24.6 percent and 29.1 percent by FY25 in comparison with 15.0 percent and 20.8 percent in FY23.
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