Jupiter Wagons shares zoom 10% to fresh high, target price raised to Rs 535
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Shares of rail company Jupiter Wagons today rallied up to 10% to hit a fresh 52-week high of Rs 448.85 on reporting yet another robust set of results in the March quarter where revenue/EBITDA/PAT saw a strong growth of 57%/60%/167% YoY led by higher volume growth and better margin.
The company manufactured the highest-ever 2,520 wagons during the quarter, a whopping 64.5% YoY/31% QoQ growth which corresponds to a run rate of 840 wagons/month.
"As a result, revenue increased sharply by 57% YoY/+25% QoQ to ₹11.1 bn. This was further bolstered by a 35% growth in CV bodies volume to 2,911. EBITDA margin improved marginally by 25 bps YoY/ -67bps QoQ to 13.2%. The sequential fall in margin is largely due to higher raw material costs as JWL ordered more wheels," Systematix said.Jupiter Wagons has an ambitious plan to raise its capacity to 100,000 wheelsets per annum from the current 10,000 wheelsets over the next 2-3 years at a total capex of Rs 10-15 billion."At full utilization, annual potential revenue could be Rs30 bn/annum. Nearly 50% of production will be for the export market as disrupted supply from Ukraine and Russia left a lot of vacuum. The management indicated a sharp jump in the margin but refrained from giving any guidance. JWL expects revenue of Rs4 bn from Bonatrans in FY25," the brokerage said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Domestic brokerage firm Systematix raised the target price to Rs 535 from earlier Rs 474 saying that the company is now completely integrated with a series of backward integration, superior margins, entry into high growth e-LCV market, and strong industry tailwinds.
The company manufactured the highest-ever 2,520 wagons during the quarter, a whopping 64.5% YoY/31% QoQ growth which corresponds to a run rate of 840 wagons/month.
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"As a result, revenue increased sharply by 57% YoY/+25% QoQ to ₹11.1 bn. This was further bolstered by a 35% growth in CV bodies volume to 2,911. EBITDA margin improved marginally by 25 bps YoY/ -67bps QoQ to 13.2%. The sequential fall in margin is largely due to higher raw material costs as JWL ordered more wheels," Systematix said.Jupiter Wagons has an ambitious plan to raise its capacity to 100,000 wheelsets per annum from the current 10,000 wheelsets over the next 2-3 years at a total capex of Rs 10-15 billion."At full utilization, annual potential revenue could be Rs30 bn/annum. Nearly 50% of production will be for the export market as disrupted supply from Ukraine and Russia left a lot of vacuum. The management indicated a sharp jump in the margin but refrained from giving any guidance. JWL expects revenue of Rs4 bn from Bonatrans in FY25," the brokerage said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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