This multibagger railway stock up 190% in a year; is more steam left in the counter?

Shares of Jupiter Wagons Ltd have delivered solid returns in the past one year by surging around 190 per cent. The returns over the last five years are even better as the multibagger stock has zoomed more than 1,100 per cent. On Thursday, the scrip rose 3.21 per cent to hit an intraday high of Rs 159.35, tad below from its 52-week high level of Rs 161.60, seen a couple of sessions back on June 20. It eventually settled 0.45 per cent higher at Rs 155.10 today. Turnover on the counter stood at Rs 5.25 crore, commanding a market capitalisation (m-cap) of Rs 6,196.04 crore.

On technical setup, analysts largely remained mixed on the counter. One of them suggested that the stock may continue to climb; while another said it would need to breach the peak level of around Rs 161 for further upside. One more analyst, however, recommended booking profits at current levels.

Support on the counter could be seen at Rs 153, followed by Rs 142, Rs 135 and Rs 130 levels.

Osho Krishan, Senior Analyst for Technical & Derivative Research at Angel One, said, "Jupiter Wagon is in a secular uptrend, hovering well above all its significant EMAs (Exponential Moving Averages) on all the time frames, indicating inherent strength. The stock is in a cycle of higher highs – higher lows, adding a bullish quotient to the trend. On the levels front, the stock has strong support placed around the Rs 130-135-odd zone. It is well verse to continue its northward journey in the uncharted territory from a short to medium-term perspective."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher, said, "The stock has witnessed a decent run in the past 2-3 months from near Rs 86 levels to scale the peak zone of Rs 161 to witness some resistance and slipping down to some extent with profit booking seen. The near-term support would be at around Rs 142 zone where it can find consolidation or expect for a revival. For fresh upward move, it would need to breach the peak level of Rs 161 and anticipate for further targets of Rs 186 and Rs 205 levels."

AR Ramachandran from Tips2trades said, "Jupiter Wagons has been in a bullish trend but is also overbought on the daily charts with strong support at Rs 153. Investors should book profits at current levels. Next resistance will be at Rs 167.70."

Q4 FY23 earnings

The firm logged a 184.18 per cent rise in net profit to Rs 39.21 crore for the quarter that ended March 2023 (Q4 FY23) as against net profit of Rs 14 crore during the March 2022 quarter. Sales zoomed 96 per cent to Rs 712 crore in Q4 FY23 as against Rs 363 crore during the same period a year ago.

On a quarter-on-quarter (Q0Q) basis, profit slipped 12 per cent from Rs 44 crore in the December quarter of the previous fiscal (Q3 FY23). However, sales rose 10.27 per cent from Rs 646 crore in the December 2022 quarter.

On an annual basis, net profit zoomed 143.75 per cent to Rs 120 crore for the fiscal ended March 2023 (FY23) against Rs 50 crore in FY22. Revenue jumped 75.45 per cent to Rs 2,073 crore in the March 2023 fiscal over Rs 1,181.75 crore in FY22.

Jupiter Wagons is a provider of comprehensive mobility solutions encompassing rail, road and marine transportation. The company also has a presence in the commercial electric vehicle (CEV) segment.

Meanwhile, Indian equity benchmarks witnessed some correction today after closing at record levels in the previous session. The domestic indices slipped as financials, banks, consumer, technology, automobile and energy stocks dragged.

Also read: Alok Industries shares jump 8% amid high volume; stock of RIL-promoted firm up 44% in 30 days

Also read: Multibagger stock: As shares zoom 2,600% in 7 months, Remedium Lifecare may announce split, bonus on Friday