Dealer’s name: Jupiter Wagons (Purchase)

CMP: ₹696

Jupiter Wagons is positioned for substantial development between FY25E-FY28E, pushed by elevated wagon manufacturing and a strategic diversification plan carried out by the administration into segments like wheel manufacturing, brake programs & disc, E-LCV and so forth.

At a macro stage, the capital expenditures by Indian Railways on the Devoted Freight Hall are anticipated to introduce roughly 600,000 new wagons by 2030. In FY24, Jupiter Wagons reported revenues of ₹3,643.70 crore which grew by 76 per cent over FY23, reaching an EBITDA of ₹489.20 crore and a PAT of ₹331 crore.

We anticipate wholesome future development of 35 per cent CAGR for FY25E-FY26 pushed by a sturdy order guide that’s double its FY24 income and anticipated development in wagon orders in coming quarters. Administration can also be actively diversifying into wheel manufacturing, containers, and different sectors to enhance total income & profitability.

We suggest a ‘Purchase’ score for Jupiter Wagons, concentrating on a value of ₹824, reflecting a P/E a number of of 53.8x primarily based on an anticipated EPS of 15.3 (FY26). This suggestion is underpinned by substantial development prospects pushed by rising wagon orders ensuing from investments within the DFC. Moreover, the corporate’s diversification into a number of segments guarantees improved margin profiles in comparison with its present choices.