Shares of Jupiter Wagons Ltd ended lower today despite the railway wagons maker announcing a strategic transformation of its subsidiary, changing the company's name from Bonatrans India Private Limited to Jupiter Tatravagonka Railwheel Factory Private Limited.
It also announced significant capacity expansion plans for this subsidiary, with the establishment of a new facility featuring state-of-the-art production lines for forged wheelsets. The new plant, located in Odisha, will raise the annual production capacity of Jupiter Tatravagonka Railwheel Factory Private Limited from the current 20,000 forged wheelsets per annum to 100,000 forged wheelsets per annum by investment of approximately Rs 2,500 crore.
However, the Jupiter Wagons stock closed 2.36% lower at Rs 532.60 against the previous close of Rs 545.45 on BSE. Total 1.59 lakh shares of the firm changed hands amounting to a turnover of Rs 8.50 crore on BSE. The market cap of the firm stood at Rs 22,608 crore on BSE. Jupiter Wagons stock has gained 627% in two years and climbed 1505% in three years.
The stock hit a 52-week high of Rs 748.05 on July 5, 2024 and a 52-week low of Rs 266.70 on October 26, 2023. However, the stock is down 29% from its 52-week high. Jupiter Wagons stock has a one-year beta of 1.5, indicating very high volatility during the period.
In terms of technicals, the relative strength index (RSI) of Jupiter Wagons stands at 47, signaling it's trading neither in the overbought nor in the oversold territory.
Shares of Jupiter Wagons are trading lower than the 5 day, 10 day, 20 day, 30 day, 100 day but higher than 150 day and 200 day moving averages.
The new facility is expected to be fully operational by calendar year 2027. Once completed, it will serve both domestic and international markets, with approximately 50% of the production capacity dedicated to exports, primarily to its partner Tatravagonka A.S and other European players.
The project will also enhance operational efficiency in Jupiter Wagons’ wagon manufacturing business through complete backward integration.
Commenting on this development, Vivek Lohia, Managing Director of Jupiter Wagons, said, "We are excited to announce the transformation of our subsidiary, now named Jupiter Tatravagonka Railwheel Factory Private Limited. The investment in a new facility housing state-of-the-art manufacturing technology, positions us for greater growth and efficiency. Jupiter Wagons continues to take bold steps toward a more sustainable, efficient, and globally competitive future for the rail infrastructure manufacturing industry in India. This latest investment underscores our vision of innovation and excellence as we now aim to deliver world-class products to global markets."
Jupiter Wagons is engaged in the business of manufacturing of railway wagons, wagon components and castings in India. The company's integrated facilities are engaged in the manufacture of railway wagons, high-speed bogies and railway castings.