Jupiter Wagons | Stock Market Updates

Jupiter Wagons recently secured a significant win with a Rs. 957 crore contracts from the Ministry of Railways.

About the acquisition

Jupiter Wagons Limited has received a green light from its board to acquire Bonatrans India Private Limited, a company in the railway and related industries sector. This acquisition will see Bonatrans become a subsidiary of Jupiter Wagons. The deal, valued at approximately Rs. 271 crores in cash, involves acquiring a 94.25% stake in Bonatrans.
Jupiter Wagons aims to leverage this strategic move to fulfil its captive requirements and cater to the growing demand in the domestic and export markets for railway components. Interestingly, no government or regulatory approvals are required for this acquisition, which is expected to close within 30 days.

Bonatrans, established in 2013, operates a manufacturing plant in Maharashtra and specializes in producing wheels and axles, key components used in rolling stock. Their manufacturing capacity is 20,000 wheels and 10,000 axles per year. With a turnover of Rs. 63.5 crore in FY 2022-2023, Bonatrans has shown consistent growth over the past three years. This acquisition is expected to strengthens Jupiter Wagons’ position in the railway sector by bringing essential manufacturing capabilities in-house.

Recently, the company secured a significant win with a Rs. 957 crore contracts from the Ministry of Railways. This project involves manufacturing and supplying 2,237 BOSM wagons designed for efficient transportation of bulk goods like coal and ore.

Financial Performance

In Q3FY24, the company posted an 39.41% increase in its consolidated revenue at Rs 895.84 crore compared to Rs 644.43 crore from the previous year’s corresponding quarter. The operating profit of the company stood at Rs 129.34 crore, while the PAT of the company stood at Rs 82.96 crore, from Rs 45.82 crore last year same quarter. The company has an order book of Rs 7,000 crore as of December 31, 2023.

Business Overview

Jupiter Wagons Limited (JWL) is currently engaged in manufacturing railway wagons, wagon components, weldable CMS crossings, load bodies for commercial vehicles and containers. JWL has its manufacturing units located at Kolkata, Jabalpur, Jamshedpur, Indore and Baddi. It has capacity to manufacture 9,600 wagons annually and is backward integrated with a foundry shop to manufacture various components of a typical wagon like couplers, bogies, draft gears, CRF section, etc.

Stock Price Movement

Today, the stock opened at Rs 339.50, with a high and low of Rs 344.20 and Rs 332.85, respectively. The stock is currently trading at Rs 334.50, which decreased by 1.27%. The stock has a 52-week high of Rs 433.95 and a 52-week low of Rs 85.37. The company has a ROCE of 24.4% and an ROE of 16.8, with a market capitalization of Rs 13,777 crore.

The stock has shown impressive growth, and investors should keep a close eye on this stock.

Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.