Rs 7074 crore order book: Multibagger stock with wagon orders from Indian Railways and Defence Ministry; best industry margins - A stock to watch out for!
Delivered mega multibagger returns of 1,738.78 per cent in the last three years. This multibagger stock is one to watch, with promising growth prospects on the horizon.
In a groundbreaking move, the recent interim budget declaration on February 1, 2024, promises a substantial boost to the railway industry, specifically targeting freight services. The finance minister's proposal includes a noteworthy increase in capital expenditure for railways, allocating a staggering Rs 2.55 lakh crores. This injection of funds is poised to revolutionize infrastructure and spur economic growth, with the transformative Jupiter Wagon taking center stage. Headquartered in Kolkata, West Bengal, Jupiter Wagons Limited, a private Indian manufacturer, is set to reshape cargo transportation and drive growth for wagon manufacturing companies.
The government's commitment to railway infrastructure translates to increased orders for wagon manufacturers, with the demand for eco-friendly and efficient wagons like the Jupiter expected to rise alongside growing freight traffic. In Q3FY24, Jupiter Wagons reported remarkable financial performance, with a nearly 39.5 per cent YoY increase in total income, a staggering 54.7 per cent YoY jump in EBITDA, and an impressive 80 per cent YoY surge in PAT. The company continues to lead the industry with an EBITDA margin improvement from 12.5 per cent in Q3FY23 to 13.9 per cent in Q3FY24.
The recent acquisition of a substantial order for 4,000 BOXNS wagons from Indian Railways solidifies Jupiter Wagons Limited's position as a premier player in Indian wagon manufacturing. Additional contracts from the Defence Ministry for Boggie Open Military (BOM) Wagons and private customers for Double Decker Automobile Carriers underscore the company's commitment to cutting-edge technology, aligning with the principles of Atmanirbhar Bharat. In the braking systems division, Jupiter Wagons secured an order for axle-mounted disc brake systems amounting to Rs 112 crore, further enhancing its Order Backlog, which now stands at approximately Rs 7074, providing increased visibility.
The Ministry of Defence contract for the manufacturing and supply of 697 Boggie Open Military (BOM) Wagons, valued at Rs 473 crore, is a significant milestone. The stock has witnessed an astounding 265 per cent rise in the last year and delivered mega multibagger returns of 1,738.78 per cent in the last three years. This multibagger stock is one to watch, with promising growth prospects on the horizon.
Disclaimer: The article is for informational purposes only and not investment advice.
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