This Railway Stock Surges Over 230% with Growing FII Interest - Is it in Your Portfolio?

Jupiter Wagons, a key player in railway engineering, caters to Indian Railways, private wagon aggregators, commercial vehicle OEMs, and more. With an impressive 230% surge in one year, this stock is catching investors' attention. Recognized for its impactful role in the railway sector and strong financials, it's worth exploring if Jupiter Wagons belongs in your portfolio.

Daily Chart Analysis

Take a glance at the daily chart, and you'll notice a powerful upward trend.

Propelling the stock from approximately 100 rupees at the beginning of 2023 to well above 350 rupees. This marks a substantial gain for investors! On December 24, 2023, the stock closed at 323.70. What fuels this remarkable surge? It's a combination of heightened interest from Foreign Institutional Investors (FIIs), the company boasting robust fundamentals, and the country's expanding railway network, indicating significant future growth opportunities.

Quarterly Financial Performance

Jupiter Wagons has showcased stellar financial performance, with its consolidated net profit more than tripling to Rs 81.58 crore in the second quarter ended September 30. The revenue from operations surged to Rs 879.30 crore from Rs 416.72 crore in the same period the previous year. Notably, the EBITDA margin improved to 13.8% in Q2 FY24 from 12% in Q2 FY23. The company's strategic move to expand capacity in the Kolkata Unit and establish a new foundry in the Jabalpur Unit speaks volumes about its growth trajectory.

Recent Update

In a recent development, Jupiter Wagons successfully raised ₹403 crore through Qualified Institutional Placement (QIP) on December 6. This move received an overwhelming response from investors. The funds garnered will be strategically deployed for capacity expansion, meticulous pursuit of backward integration, including inorganic initiatives, and scaling up emerging business verticals, as affirmed by Vivek Lohia, the Managing Director of Jupiter Wagons Ltd.

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