Jupiter Wagons shares jump 4% on bagging ₹271 cr order

Shares of Jupiter Wagons Ltd surged as much as 4% on March 21, to hit an intraday high of ₹348.35 apiece on the BSE, a day after the company completed the acquisition of Bonatrans India Private Limited (BIPL) for ₹271 crore via a share purchase agreement with existing shareholders. This strategic move marks a significant milestone for JWL, positioning it as the first rolling stock manufacturing company to have its own wheel plant, says the company. 

Aurangabad-based Bonatrans India manufactures rolling stock wheelsets, with a production capacity of 20,000 wheels and 10,000 axles annually. With the acquisition of Bonatrans, Jupiter Wagons aims to bolster operational efficiency while reducing dependency on imported wheels.

Following the development, the scrip opened higher at ₹343.55, up 2.98%, as against the previous closing price of ₹333.60. At 12:17 pm, the share price of the company was trading 2.74% higher at ₹342.75. This was in line with the broader BSE Sensex, which was trading 417.20 points higher at 72,518.89. The company's market capitalisation stood at ₹14,182.90 crore, with 77,100 shares exchanging hands on the BSE, as against the two-week average of 1.80 lakh shares. The company hit a 52-week high of ₹433.95 on January 23 this year and a 52-week low of ₹85.37 on March 28 last year.

In the past three months, six months and one year, the counter has risen 5.27%, 7.68% and 263.72%, respectively. In the year-to-date period, the counter has risen 7.38%.

"This strategic move not only strengthens our position as an innovative leader in integrated mobility solutions but also propels us towards becoming a comprehensive rolling stock manufacturer," says Vivek Lohia, MD, Jupiter Wagons.

Notably, Jupiter Wagons, which provides mobility solutions across freight wagons, locomotives, passenger coaches (LHB), braking systems, metro coach, commercial vehicles, and marine containers, plans to invest an additional ₹1,000 crore over the next two years. "These investments will enhance production capacity and drive the plant towards full backward integration. The ultimate goal is to cater to the burgeoning needs of the Indian railway sector, with aspirations to transform it into an export hub, leveraging JWL’s existing esteemed partners," says the company.

Following the acquisition, Bonatrans Group, an existing shareholder and leading wheel manufacturer in Europe, will continue its vital role as a minority shareholder, ensuring continuity and synergy within the newly integrated structure.

Meanwhile, earlier this month, Jupiter Wagons received a contract worth ₹957 crore from the ministry of railways for the manufacturing and supply of 2,237 of BOSM wagons.

In the October to December quarter of FY24, the company’s net profit grew 79.81% to ₹83.40, against ₹46.38 crore in the same period last year. The company’s net sales in the December quarter were up 39.01% to ₹895.84 crore against ₹644.43 crore in the December quarter of FY22.