The stock of a company that manufactures wagons/coaches for Indian Railways is giving tremendous returns these days. Within a few years, it has turned into a multibagger stock. What is the reason behind this...
Jupiter Wagons of Kolkata, which manufactures coaches for Indian Railways, is currently giving tremendous returns to its share holders. This small capital segment company has now become a multibagger return giving stock. After all, how has the company registered this growth and what is the company's plan going forward? Let's understand…
Jupiter wagons has been the favorite of all mutual funds in the month of May. A lot of money has been invested in the shares of the company. If you look at the time of only one month, then the growth of more than 35 percent has been seen in the shares of the company. Currently, the price of one share of the company is Rs 247.10 on NSE.
Repeated upper circuit
In the last 5 days itself, a tremendous jump has been seen in the stock of the company. Its price was fixed from Rs 216 to Rs 257 in just 5 days and the company's stock also hit upper circuit again and again. However, now it has broken down to Rs 247.
Why is the stock of the company rising?
The major reason for the rise in the stock of Jupiter Wagons is the expansion of railways in the country. The government is focusing on rapidly developing the Dedicated Freight Corridor. This will increase the demand for goods trains and wagons, which is the core business of Jupiter Wagons. At the same time, a train like Vande Bharat Express is also running in the country. That's why the possibilities of the railway sector have increased. Companies working in the railway sector are benefiting from this.
Apart from this, the company has focused on diversifying its business. Now the company is going to enter the electric vehicle segment. However, for now it will focus on making light commercial vehicles only. In this regard, the company's MD Vivek Lohia says that even though the business of auto sector is not very high margin, but the electric light commercial vehicle market in the country is up to 6 lakh units every year, and it is growing rapidly.
5 times increased profit
Not only this, the profits of Jupiter wagons have also increased a lot these days. The company's profit in the April-June quarter last year was Rs 12.8 crore, this year it has increased to Rs 62.8 crore. This is an increase of almost 5 times. The revenue of the company has also increased by 155 percent. The company had an order book of Rs 6,122 crore in the quarter ended June 30. Along with the Indian Railways, steel and cement sectors have also increased their capacity, the company has got the benefit of this entire scenario. Significantly, the Government of India and the Indian Railways are jointly developing two dedicated steel and cement corridors in the country. This will increase the demand for logistics in the country.
Multi Bagger Stock
The share of Jupiter Wagons was only 53 rupees 5 years back. According to today's price, people will get around 366 percent return. If we look at the figures of 2023 only, then the shares of Jupiter Wagons have come down from Rs 96.35 to Rs 247 in just 7 months.
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