Jupiter Wagons shares in focus as firm bags Rs 100 crore order for double-decker automobile carriers

Shares of Jupiter Wagons, a provider of mobility solutions encompassing rail, road and marine transportation, will be in focus on Monday morning after the company said it has received a significant contract from one of the leading automobile manufacturers for the manufacturing and supply of 4 rakes of Double Decker Automobile Carrier Wagons worth around Rs 100 crore.

In a filing to BSE, Jupiter Wagons said these tallest Double Decker Automobile Carrier Wagons will be able to carry SUV editions on both bottom and top deck and come with a numbers of advanced technologies like articulated bogies and reduced idling time on account of sick wagon substitution. Such wagons are being introduced to the Indian Railways for the first time considering the maximum moving dimensions which not only suits the Dedicated Freight Corridor (DFC) but also will comply with a large section of the available national railway network," it said.

Arihant Capital Markets said Jupiter Wagons' order book stood at Rs 6,755 crore in Q2, which was about 2.25 times its trailing 12 months revenues, showing business visibility. "The company is currently executing around 700 wagons per month and focused on 800/1000 wagons per month at the end of FY24E/FY25E respectively. The capex for foundry, wheelsets, and brake systems would reduce costs and increase the margins going forward. We have a positive outlook on the stock," it said.

On the order, Vivek Lohia, Managing Director at Jupiter Wagons said: "This achievement not only highlights our manufacturing prowess but also reinforces our commitment to contributing to the nation's railway infrastructure development. We are ready to leverage our expertise and resources to deliver these wagons, ensuring they meet the highest standards of quality and performance.”

The company also bagged an order from Ministry of Defence last week for the manufacturing and supply of 697 Boggie Open Military (BOM) Wagons. The contract was valued at Rs 473 crore. The Bogie Open Military (BOM) wagons, serve as specialist wagons crucial for the mobilisation of army units. These wagons, Jupiter Wagons said, play a pivotal role in transporting various military assets to operational areas. This critical rolling stock ensures the swift and simultaneous induction of units and equipment as well as facilitates their movement for military exercises and station transfers, the company said in a BSE filing.

"This landmark contract, mark a significant step towards bolstering indigenous production and fostering the participation of the private sector in defence manufacturing," Jupiter Wagons said.

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