Shares of Jupiter Wagons surged more than 10 percent, reaching an all-time high of Rs 448.8 apiece, following a remarkable increase in its net profit, which more than doubled year-on-year to Rs 104.2 crore in the January-March quarter (Q4FY24), up from Rs 40.7 crore in the corresponding period last year.
Analysts at Systematix have raised the target price for Jupiter Wagons shares to Rs 535 from Rs 474 after the impressive Q4 results, suggesting a potential upside of over 19 percent from current levels.
In their post-result analysis, the analysts highlighted Jupiter Wagons’ complete integration with backward processes, improved margins, entry into the high-growth e-LCV market, and favorable industry trends.
The company’s total income also witnessed a substantial increase, rising by 57 percent year-on-year to Rs 1,121.3 crore in Q4FY24 from Rs 712.7 crore in the previous year. Jupiter Wagons achieved its highest-ever production of 2,520 wagons in the March-ended quarter and aims to increase its wheelset capacity to 1 lakh per annum from the current 10,000 wheelsets over the next 2-3 years.
Furthermore, Jupiter Wagons recently secured a contract with the Ministry of Defence for the manufacturing and supply of 697 Boggie Open Military (BOM) wagons, which is expected to enhance its order backlog and provide strong visibility, according to the management.
Jupiter Wagons is known for offering comprehensive mobility solutions, including freight wagons, locomotives, passenger coaches, braking systems, and metro coaches.
Year-to-date, the stock of Jupiter Wagons has surged over 33 percent, outperforming the benchmark Nifty 50 index, showcasing investors’ confidence in the company’s growth prospects.
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