Jupiter Wagons: Railway Stock to Watch with ₹10,000 Cr Revenue Target by FY28
Introduction
Jupiter Wagons Limited, a leading manufacturer of railway wagons, brake systems, and electric mobility solutions, has caught investor attention with its ambitious revenue target of ₹10,000 crore by FY28. With a strong foothold in railway engineering and expansion into defense and advanced transportation, the company aims to achieve exponential growth over the coming years.
Despite recent stock price corrections, Jupiter Wagons remains a compelling long-term bet, given its strong order book, diversified business segments, and strategic expansions.
Stock Performance & Market Trends
Jupiter Wagons’ stock closed at ₹318.20 per share, reflecting a minor decline of 1.09% from its previous close at ₹321.70. However, the stock has underperformed in recent months, showing a negative return of 41.33% over the last six months.
Currently, the stock is trading at a 57.46% discount from its 52-week high of ₹748.05, offering potential value for long-term investors seeking an entry point into the railway sector.
Management’s Growth Vision
Jupiter Wagons posted revenue of ₹3,641 crore in FY24 and aims to hit ₹5,000 crore by FY26, marking a 37.32% growth. The company expects its wagon business to expand by 10–15% annually, with subsidiary Jupiter Tatravagonka targeting ₹300 crore revenue by year-end.
By FY28, Jupiter Wagons is targeting ₹8,000–10,000 crore revenue, an increase of 120–175% from FY24, signaling strong future growth potential. The expansion will be driven by non-wagon segments, making the company more resilient and diversified.
Company Overview
Jupiter Wagons is a key player in railway manufacturing, producing wagons, passenger coaches, brake systems, and components. The company has also diversified into electric mobility and commercial vehicles, strengthening its position in India’s growing transportation sector.
Its Tatravagonka Railwheel Factory has been commercialized, helping double revenues. It has also delivered 13,000 brake discs and exported 10,000 axle boxes to Indian Railways. Additionally, the company supplied 230 brake systems for passenger coaches, reinforcing its technological edge.
Strong Order Book
As of December 31, 2024, Jupiter Wagons had an order book worth ₹6,320 crore, ensuring stable revenue visibility for the foreseeable future.
Fundraising & Capital Utilization
Jupiter Wagons has approved a ₹3,000 crore QIP (Qualified Institutional Placement), although the company has no immediate fundraising plans. Previously, it raised ₹800 crore, which was utilized for wheel project development and other expansions.
Electric Mobility Expansion
The company has increased its stake in Jupiter Electric Mobility from 60% to 75% and acquired Log9 Technology to enhance battery innovation for electric trucks and railways.
A significant milestone is the launch of its Battery-as-a-Service (BaaS) model, which offers affordable leasing options for TEZ vehicles. Through its JEM Udaan program with Porter, it has secured over 500 orders for electric commercial vehicles, accelerating its EV footprint.
Recent Financial Performance
Jupiter Wagons demonstrated strong financial growth in its latest quarterly results:
| Metric | Q3 FY24 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Revenue | ₹896 Cr | ₹1,030 Cr | +14.96% |
| Net Profit | ₹81 Cr | ₹98 Cr | +18.52% |
The profitability increase of 18.52% indicates strong operational efficiency and demand for its products.
Key Financial Ratios
Below is a summary of Jupiter Wagons’ financials:
| Metric | Value | Metric | Value |
|---|---|---|---|
| Market Cap | ₹13,505 Cr | Stock P/E | 35.6 |
| Current Price | ₹318 | Book Value | ₹60.3 |
| High/Low | ₹748 / 290 | Dividend Yield | 0.31% |
| ROCE | 31.7% | ROE | 27.4% |
| Face Value | ₹10.0 | Debt to Equity | 0.16 |
| P/E Ratio | 35.6 | Pledged % | 0.00% |
| QoQ Profits | 10.4% | Qtr Profit Var | 17.3% |
| Industry P/E | 35.0 | Graham Number | ₹111 |
| Intrinsic Value | ₹341 | RSI | 35.1 |
| EPS | ₹9.08 | No. Eq. Shares | 42.4 |
| PEG Ratio | 0.44 | DMA 200 | ₹463 |
| Free Cash Flow 3Yrs | ₹-66.2 Cr | Free Cash Flow | ₹-97.2 Cr |
| Debt | ₹400 Cr |
Despite some short-term volatility, Jupiter Wagons exhibits strong return on equity (ROE) and return on capital employed (ROCE), making it an attractive long-term bet.
Conclusion: Should You Invest in Jupiter Wagons?
Jupiter Wagons presents a compelling growth story with its ₹10,000 crore revenue target by FY28, strong order book, and diversified business model.
While the stock has seen recent corrections, its long-term fundamentals remain strong, backed by expansion in electric mobility, railways, and defense sectors. Investors with a long-term horizon may consider accumulating shares at current levels, especially given its significant discount from its 52-week high.
With robust financials, strong market presence, and aggressive growth plans, Jupiter Wagons is undoubtedly a railway stock worth keeping on your radar.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.