Jupiter Wagons hit 20% upper circuit, other rail stocks rally 15%; here’s why

Shares of Jupiter Wagons hit the 20% upper circuit to trade at Rs 312.30 today, while other rail stocks such as IRCTC, RailTel and Rail Vikas Nigam Limited (RVNL) also rose in the range of 2% to 5% during the trade. The rally comes on the back of the recent rationalisation of the fare structure, where the expected revenue gain from this change is ₹600 crore, while the union budget is also around the corner, igniting buying interest amongst investors. 

Jupiter Wagons announced through an exchange filing that its parent company, Tatravagonka, has acquired additional equity shares through the conversion of convertible warrants issued earlier under a preferential allotment approved by the company.

“We, TATRAVAGONKA a. s. (the Company), wish to inform you that the Company has acquired 28,72,340 equity shares of Jupiter Wagons Limited. The said equity shares are acquired pursuant to conversion of 28,72,340 convertible warrants issued on June 29, 2024, by Jupiter Wagons Limited,” the filing noted. 

Other rail stocks that also saw an uptick:

RailTel Corporation of India recorded a near 4% jump amidst reports that the state-owned telecom and ICT services provider is in talks with Elon Musk-owned Starlink for a potential partnership in India.

On the other hand, Rail Vikas Nigam Limited saw a rise of nearly 5% in the intraday trade, but the stock will be under watch as the company notified the bourses that it has received a Demand Notice of Rs 17.13 lakh.

Rites, a transport infrastructure consultancy, saw its shares jump above 4% as well. The company has signed a memorandum of understanding (MoU) with the Government of the Republic of Botswana, represented by its Ministry of Transport and Infrastructure, to collaborate on the development and modernisation of transport infrastructure in Botswana on December 19.

Other railway sector stocks like Indian Railway Finance Corporation Limited (IRFC) and Titagarh Railway Systems also saw buying interest, with their shares rising between 2% and 5%. 

The rebound comes after rail stocks had a weak performance through the year. On a YTD basis, Titagarh and RVNL declined 25% and RailTel was down 15%. Jupiter Wagons was the worst hit, down by nearly 40% in the calendar year.