The current minister for road transport and highways, Nitin Gadkari, is on a mission to expand India’s land connectivity by means of roads, railways and bridges. As the government aims to reduce logistics costs from the current 16% to 9% of GDP in the next three years, it has implemented a national logistics policy and the PM Gati Shakti initiative to boost industry competitiveness and cut costs. The minister has proposed 260 ropeways and funicular railway projects worth Rs 1.3 lakh crore. The government is working on cost-effective transport models and has urged the private sector to leverage investment opportunities in the sector.
Taking into consideration the government's aim, the railway wagon companies have since made new hires. Among those, one of the stocks that has given a remarkable return of 369.08% over the course of one year is Jupiter Wagons Limited.
Incorporated in 1979, Jupiter Wagons Limited (JWL) is a leading integrated railway engineering company in India, specializing in the manufacturing of application-based load bodies on commercial vehicles and ISO marine containers for domestic and international use. The wagon fabrication facility is distributed into three sections of clientele: Indian Railways, Defence, and Non-Railway Customers.
JWL caters to the commercial vehicle, railway, and power sectors through the manufacturing of tippers, load bodies, wagons, and components. The company operates in five factories, with four located in Madhya Pradesh and the fifth in Jharkhand. The company's products cater to a broad spectrum of industries and sectors, including mining, road construction, goods transportation, solid waste management, municipal applications, and Indian Defence.
Jupiter Wagons Limited, in October 2022, emerged as the successful resolution applicant for Stone India. Stone India was a supplier of braking systems and engineering products for Indian Railways. The company took over Stone India last year for about Rs 20 crore in a corporate insolvency resolution process by the National Company Law Tribunal (NCLT). The company told in May that they would reopen the Stone Indian within the next six months after carrying out a modernisation program at a cost of Rs 25–30 crore. The company officials said that subsequent to the brownfield expansions at its two existing facilities being done, the acquired unit will help ramp up its capacity by at least 30 percent.
For funding the acquisition of Stone India, the company earlier in the year raised Rs 125 crore through a qualified institutional placement (QIP) for modernisation, and expansion of wagon-making capacity. The QIP received an overwhelming response from investors like Tata Mutual Fund, Ananta Capital, and ITI Mutual Fund.
According to the latest circular, Jupiter Wagons received the board's approval to raise Rs 700 crore through the Qualified Institutional Placement (QIP) route.
The funding program aims to bolster JWL's resources for expansion, investments in subsidiaries, joint ventures, and various manufacturing plans. In the words of the Managing Director, "The objective (of raising funds) is to further strengthen the company's financial position and solidify our market presence and leadership position. The funds will also be used to ramp up wagon manufacturing capacity, build a new foundry plant at the Jabalpur wagon facility, expand the existing foundry plant at the Kolkata wagon facility, and backward integrate the wagon business”.
Jupiter Wagons reported a consolidated net profit that jumped almost fivefold to Rs 62.85 crore from Rs 12.81 crore in the corresponding period last year. Revenue rose 155% YoY to Rs 753.19 crore, while EBITDA soared 222% to Rs 96.81 crore.
|Total Income Growth (%)||5.99||10.27||54.74||40.84||-18.44|
|Total Expenses Growth (%)||5.96||9.68||52.66||37.69||-19.53|
|EBIT Growth (%)||6.25||14.66||72.4||74.82||-4.49|
|Profit after Tax (PAT)||62.86||39.21||44.59||24.06||12.92|
|PAT Growth (%)||60.28||-12.06||85.36||86.19||-6.37|
|EBIT Margin (%)||12.24||12.21||11.75||10.54||8.49|
|Net Profit Margin (%)||8.32||5.5||6.9||5.76||4.36|