Multibagger Railway Company Announces 5-Fold Expansion in Forged Wheelset Capacity from 20,000 to 1 Lakh Units Per Annum with Rs 2,500 Crore Investment!
The company’s shares have delivered an impressive multibagger return of around 1,500 per cent in just 3 years.
This Small-Cap Railway Engineering company has announced a strategic shift for its subsidiary, renaming Bonatrans India Private Limited to Jupiter Tatravagonka Railwheel Factory Private Limited. Along with this rebranding, Jupiter Wagons has outlined significant capacity expansion plans for the subsidiary, including the establishment of a new facility equipped with advanced production lines for forged wheelsets. The new plant, located in Odisha, will expand the subsidiary’s annual production capacity from 20,000 to 100,000 forged wheelsets, with an investment of approximately Rs 2,500 crore. The facility is slated to be fully operational by 2027.
Once completed, Jupiter Wagons Ltd will cater to both domestic and international markets, with around 50 per cent of production capacity dedicated to exports, particularly to its partner Tatravagonka A.S. and other European companies.
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The project will also bolster operational efficiency within the company's wagon manufacturing division by achieving complete backward integration. By setting up this integrated forging line, it aims to streamline production, ensure top-quality control, and secure timely access to essential components for its operations.
Jupiter Wagons Ltd is an integrated railway engineering company specializing in freight wagons and passenger coach components for Indian Railways. The company is engaged in metal fabrication, producing load bodies for commercial vehicles, rail freight wagons, and railway transportation equipment. Its product offerings include wagons, wagon accessories, brake systems, brake discs, complete track solutions, commercial vehicle load bodies, commercial electric vehicles, and containers.
Currently, shares of Jupiter Wagons are trading at around Rs 528.80 per share on the BSE. The company’s current market capitalization stands at Rs 22,447 crore. Additionally, the shares have delivered an impressive multibagger return of around 1,500 per cent in the past 3 years.
As per the Quarterly Results, in the Q1 FY25, Jupiter Wagons Ltd recorded a revenue of Rs 895 crore compared to Rs 753 crore. The operating profit stood at Rs 129 crore with a 14 per cent margin. The net profit stood at Rs 89 crore compared to a profit of Rs 64 crore.
According to the company's shareholding pattern, the promoters hold a significant 68.11 per cent stake. Public investors own 24.24 per cent of the shares. while Foreign Institutional Investors (FIIs) hold 5.34 per cent and Domestic Institutional Investors (DIIs) own 2.30 per cent. Both of these market participants have increased their stake in July 2024.
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Disclaimer: The article is for informational purposes only and not investment advice.