Jupiter Wagons Q1 FY26 performance remained subdued, with profitability hit by slower execution. Operating revenue declined 47.8% YoY/56% QoQ to Rs 4.6 billion, primarily on account of lower sales volumes. Freight wagon production declined to 826 wagons in Q1FY26 vs 1,954 in Q1 FY25/2,375 in Q4 FY25, due to wheelset supply issue in a seasonally weak quarter and labour issues at Jabalpur plant.
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Systematix Report
Jupiter Wagons Ltd. over the years have diversified its business segments (by adding two major businesses eLCV & BESS) while keeping strong focus on freight wagon operations (capacity 1k wagons/pm).
Jupiter Tatravagonka Railwheel Factory Pvt Ltd. once operational in CY27, with Rs 25 billion of phased investment will boost domestic capacity and aim at 40% output for exports (specially Tatravagonka in Europe).
We expect the company to report 19.5% earnings CAGR over FY25-FY27E and generate strong RoE/RoCE of 14%/15% in FY27.
We maintain our Buy rating on the stock with a revised target price of Rs 430 based on 35x (earlier 40x) as owing to wheelset supply risk and absence of major order from the Indian Railways.
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