Jupiter Wagons Ltd (previously CEBBCO)

Stock Opportunities
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Important points:

  1. For backward integration company is starting to make wheels, braking systems and foundry operations.
  2. By FY25 company will be making 1000 wagons per month from 700 currently.
  3. 20,000 wagon tender of Railways is closing on 15 November and two separate tenders of 10,000 units each for deferent design wagons, including aluminium wagons, are expected before the end of current fiscal year.
  4. ARAI certification for commercial EV will be available by December or January.
  5. Commercial rollout of vehicles expected in April 2025 and they expect to sell 2000 vehicles in first year.
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Company has concluded the QIP. The allotment happened at the price of 315 Rs. per share totaling to 403 crores.

Updated List:

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Re-entered today. Huge runway of growth. Matter of time (very short I guess in this bull market) when QIP price overhang would be done away with.

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Acuite Ratings and Research Ltd have assigned the long term and short term rating of Jupiter Wagons.

Jupiter Credit Rating.pdf (264.6 KB)

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24.03.2023: Acuité has reaffirmed and assigned its long-term rating of ‘ACUITE A+’ (read as ACUITE A plus) and the short-term rating of ‘ACUITE A1’ (read as ACUITE A one) to the Rs.605.61 Cr bank facilities of Jupiter Wagons Limited (Erstwhile Commercial Engineers and Body Builders Company Limited). The outlook is ‘Stable’.

December 12, 2023: Long Term Rating AA (-) Stable Upgraded and Short Term Rating ACUITE A1(+)

Kindly share full rational report to understand better.

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New order for the company:

We are pleased to inform that Ministry of Railways (Railway Board) vide its Letter of Acceptance (LOA) no. 2023/RS(I)/954/7 TC dated 14th December, 2023 has awarded an order to the Company for manufacture and supply of 4,000 numbers of BOXNS Wagons for a contract value of Rs.1,617 Crores.

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JUPITER WAGONS: MINISTRY OF DEFENCE SIGNS CONTRACTS WORTH RUPEES 4.7B FOR PROCUREMENT OF MILITARY EQUIPMENT - PIB
Company

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Holding it for a few months, since then Titagarh Rail has been rallying like crazy but our poor JWL is stuck in ASM.
Good to see some positive news.
Any idea on how long it can stay in ASM?

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no idea,

Jupiter Wagons update
Company also got Rs 100 crore order for manufacture and supply of 4 rakes of automobile carrier wagons.

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Is there a way to check when JWL will
Be out of the 5% band? What are ASM rules?

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ESM
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20230602-44

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Thanks @GreenGlobe

When does JWL step out?

It has unfinished business.

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Came out of ASM on 14th Jan and there is no looking back since then. Multiple revenue streams wagons (Govt and private), brakes, wheels and last mile E-vehicle shall ensure runway for growth. Expecting another very quarter.

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comparing Jupiter with other rail stock, it has highest Operating margin.

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Lowest Employee cost
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Highest ROCE
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Price comparison
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It should catch up with IRCON and Texmaco in recent run up, if rail stock continue this extremely high momentum.

Disclosure: Invested.

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I compared JWL to Titagarh in all aspects in Sept-Oct and thought the same. But look where Titagarh is now while JWL is still at cost to acquire.

Stocks stuck in ASM suffer a lot.

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@jitendrajain17 any idea when it’ll move out of the 5% band and into 20%?

Also, where can one check this?

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Where is JWL headed?

I see they are now venturing into new businesses, aside from just the wagon’s.

  • railway brakes
  • EV commercial pickups
  • marine containers

What are your views on this?

Is it positive and will it open new growth avenues and potentially build JWL towards a solid player. (Will it overtake TWL/Texrail)

Ideally, if they max out on their wagons production 8-10K / year - then these new businesses should propel the company into new directions and new revenue streams.

Wondering why the broader market hasn’t valued these developments, it’s not seen in price action/volumes.

What does the market know - that’s preventing it from jumping in on Jupiters wagon?

Invested at lower levels, and in thoughts.

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Jupiter results are out:

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Investor Presentation: https://www.bseindia.com/xml-data/corpfiling/AttachLive/16094f7a-c13e-4f63-a187-80dc113dd9b0.pdf
Management Commentary:

  • Q3FY24 results: Total Income increased by 39.4% YoY to ₹90,081 Lakh.
  • EBITDA surged by 54.7% YoY to ₹12,480 lakhs, with an industry-leading margin of 13.9%.
  • Profit after tax rose by 79.8% YoY to ₹8,340 lakhs.
  • Despite a 10-day production loss, company surpassed ₹90,000 lakh in quarterly income.
  • Substantial order of 4,000 BOXNS wagons from Indian Railways secured.
  • Contracts for Defense Ministry wagons and Double Decker Automobile Carriers obtained.
  • Order for axle-mounted disc brake systems (~₹11,200 lakh) in braking systems division.
  • Order Backlog reached ₹7,07,361 lakh, enhancing visibility for future projects.
  • Successful Qualified Institutional Placement (QIP) in December 2023 raised ~₹40,300 lakh.
  • Funds from QIP to support growth plans, including setting up a new foundry and backward integration.
  • Credit rating of "AA (-)” & “A1 (+)” with a stable outlook reflects financial prudence and stability.

Disclosure: Holding

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956cr order received.

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D: Invested

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Quite good results for Q4, Did anyone had attended conf call, with clarity on such strong increase in volume and prices