Jupiter Wagons zooms 12% to new high on robust Q4 results; Systematix sees further upside

Jupiter Wagons is a provider of comprehensive mobility solutions encompassing rail, road and marine transportation.

Shares of Jupiter Wagons skyrocketed over 12 percent to hit a fresh record high of Rs 473.60 on the National Stock Exchange (NSE), extending the previous session's gains. The 14 percent gain in two sessions is on the back of stellar earnings report for the quarter ended March 2024.

The company's net profit jumped over two-fold on-year to Rs 104.2 crore and total income rose by 57 percent YoY to Rs 1,121.3 crore in Q4FY24.

Jupiter Wagons' order book as of March 31, 2024, stands at Rs 7,101.66 crore. It recently secured a contract with the Ministry of Defence for manufacturing and supply of 697 Boggie Open Military (BOM) wagons.

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"The new contract wins in this quarter from the Ministry of Defence and Ministry of Railways will add to existing order backlog and provide strong visibility," the management said post earnings.

Following the impressive results, Systematix raised target price on the stock to Rs 535 per share from Rs 474 earlier, indicating an upside of over 27 percent from the previous close.

"The company has now completely integrated itself with a series of backward integration, superior margins, entry into high growth e-LCV market, and strong industry tailwinds," the brokerage said.

Jupiter Wagons is a provider of comprehensive mobility solutions encompassing rail, road, and marine transportation. The company also has a presence in the commercial electric vehicle (CEV) segment.

The company informed that it manufactured highest-ever 2,520 wagons in the Jan-March quarter and has plans to raise its capacity to 1 lakh wheel sets per annum from current 10,000 wheelsets over the next 2-3 years.

At full utilisation, potential revenue could be Rs 3,000 crore/annum.

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"Nearly 50 percent of production will be for the export market as disrupted supply from Ukraine and Russia left a lot of vacuum. The management indicated a sharp jump in the margin but refrained from giving any guidance. JWL expects revenue of Rs 400 crore from Bonatrans in FY25," Systematix said.

At 1:22 pm, Jupiter Wagons shares were trading 11.2 percent higher at Rs 467.60 on the National Stock Exchange (NSE). So far this year, the stock has risen around 46 percent, outpacing benchmark Nifty 50 which has risen around 1.3 percent during this period.

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