With strong Q4 earnings, Jupiter Wagons soars to a new high of 12%; Systematix anticipates further gain

With strong Q4 earnings, Jupiter Wagons soars to a new high of 12%; Systematix anticipates further gain

The benchmark Nifty 50 has increased by around 1.3 percent this year, followed by the over 46% increase in Jupiter Wagons shares so far this year.

Rail, road, and sea transportation are all included in the full mobility options offered by Jupiter Wagons.

On the National Stock Exchange (NSE), shares of Jupiter Wagons surged more than 12 percent to a new record high of Rs 473.60, maintaining the gains from the previous session. The outstanding earnings report for the quarter ending March 2024 is what led to the 14% rise in only two sessions.

In Q4FY24, the company's total revenue increased by 57% YoY to Rs 1,121.3 crore, and its net profit more than doubled year over year to Rs 104.2 crore.

As of March 31, 2024, Jupiter Wagons has an order book valued at Rs 7,101.66 crore. It has won a contract to manufacture and deliver 697 Boggie Open Military (BOM) wagons to the Ministry of Defense.

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"The new contract wins in this quarter from the Ministry of Defence as well as Ministry of Railways will add to the already existing order backlog and provide strong visibility," the leadership team said after the results report.

Systematix increased its target price for the company to Rs 535 per share from Rs 474 previously, reflecting the outstanding performance and a gain of more than 27% from the previous close.

"The company has now completely absorbed itself with a series of backward integration, superior margins, entrance into the high growth e-LCV market, along with significant industry tailwinds," the brokerage said.

Rail, road, and sea transportation are all included in the full mobility options offered by Jupiter Wagons. Additionally, the business operates in the commercial electric vehicle (CEV) market.

The firm said that it produced 2,520 wagons, the most ever, during the January–March quarter. Over the next two to three years, it intends to increase its capacity from the current 10,000 wheel sets to one lakh wheel sets annually.

Potential income at full use might reach Rs 3,000 crore annually.

The export market will account for over half of output, with a large gap created by the disruption of supplies from Russia and Ukraine. The management did not provide any advice while pointing out a significant increase in the margin. Systematix said that JWL anticipates earning Rs 400 crore from Bonatrans in FY25.

On the National Stock Exchange (NSE), Jupiter Wagons shares were up 11.2 percent at Rs 467.60 at 1:22 pm. The benchmark Nifty 50 has increased by around 1.3 percent this year, trailed by the stock, which has increased by almost 46% so far.