Rs 7,102 crore order book: Multibagger railway wagons company achieves significant milestones in battery technology for Indian Railways

The stock gave multibagger returns of 340 per cent in 1 year and a whopping 2,000 per cent in 3 years.

Today, one of the Top Gainers on BSE, shares of Jupiter Wagons Ltd (JWL) surged 1.76 per cent to an intraday high of Rs 691.95 per share from the previous closing of Rs 680 per share. At the closing bell, shares of the company were trading at Rs 656.90 per share, down 3.40 per cent.

Jupiter Electric Mobility Private Limited (JEM), a subsidiary of Jupiter Wagons Limited (JWL), has achieved significant milestones in developing and certifying Lithium-Ion Phosphate (LFP) battery technology for Indian trains. Partnering with Log9 Materials, a leader in deep-tech battery solutions, JEM is aiming to revolutionize rail transport with efficient and sustainable batteries.

Key Achievements:

• Pioneering RDSO Certification: JEM became the first company to receive certification from the Research Designs and Standards Organisation (RDSO) for its 11.2 kWh LFP battery pack. This accomplishment, following a successful six-month trial in non-AC coaches, marks a major step forward in adopting battery technology for Indian Railways.
• Siemens' Vote of Confidence: Siemens placed a purchase order for 36 units of JEM's 72.8 kWh auxiliary batteries for 9 Vande Bharat Trainsets. This order signifies Siemens' trust in the reliability and performance of JEM's advanced battery solutions. Notably, the 72.8 kWh pack also received RDSO approval, further solidifying its safety and effectiveness.
• Technical Qualification by BHEL: BHEL, a prominent player in the railway sector, has technically qualified JEM's 72.8 kWh LFP battery pack for use in Vande Bharat Trainsets. This qualification emphasizes the robustness and technical excellence of JEM's battery technology.

Impact and Future Outlook: These milestones demonstrate JEM's commitment to modernizing and electrifying Indian Railways, ultimately leading to a greener and more efficient transportation system. JEM's LFP batteries boast superior performance, safety, and longevity, making them ideal for various railway applications.

Commenting on these significant achievements, Mr Vivek Lohia, Managing Director of Jupiter Wagons, said, "These accomplishments underscore our steadfast dedication to innovation and excellence in railway technology. The RDSO certification, the confidence shown by Siemens, and the technical qualification by BHEL are clear indicators of the superior quality and dependability of our LFP battery solutions. Given the significant demand from Indian Railways and the shift from conventional energy sources towards sustainable and energy-efficient solutions, we believe this business can emerge as a significant contributor to overall revenues over a medium to long-term horizon.”

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About the Company

Jupiter Wagons Ltd (JWL) is a manufacturer focused on metal fabrication, specifically creating load bodies for commercial vehicles (like shipping containers and garbage-bin collectors), rail freight wagons, and various components. This diverse product portfolio caters to a wide range of industries, including mining, road construction, transportation, waste management, city services, and even national defence.

Talking about the financials, the company has a market cap of over Rs 27,000 crore and has delivered good profit growth of 80.1 per cent CAGR over the last 5 years. In its Quarterly Results (Q4FY24) and annual results (FY24), the company reported amazing numbers. As of March 31, 2023, the company order book stands at Rs 7,10,166 lakh (rounded off to Rs 7,102 crore). 

In Q4FY24, the company delivered strong financial results. Total income surged 57 per cent year-over-year (YoY) to Rs 1,12,134 lakh. EBITDA followed suit, rising 59 per cent YoY to Rs 14,772 lakh. Profit after tax (PAT) witnessed a significant increase of 156 per cent YoY to Rs 10,422 lakh. The company's financial performance for FY24 was strong, with total income nearly doubling year-over-year to Rs 3,66,224 lakh. Profit after tax (PAT) followed suit, surging 165 per cent to Rs 33,279 lakh.

In April 2024, FIIs increased their stake to 2.28 per cent compared to 1.26 per cent in December 2023. The stock gave multibagger returns of 340 per cent in 1 year and a whopping 2,000 per cent in 3 years. Investors should keep an eye on this railway wagon company’s stock.

Disclaimer: The article is for informational purposes only and not investment advice.