Profit booking hits Jupiter Wagons despite Q2 growth

Despite posting steady Q2 earnings, Jupiter Wagons faced a downturn on November 11, with shares dropping by nearly 6%. At 10:32 AM, the company’s stock was trading at ₹479.25 on the NSE. The stock correction follows months of profit booking in the railway sector, with Jupiter Wagons experiencing a 14% dip over the last three months. 

This activity may serve as a consideration point for those who invest in stocks, especially within the railway sector, as they evaluate the broader market trend.

Company’s Q2FY25 revenue and profit growth

For Q2FY25, Jupiter Wagons posted a year-on-year consolidated net profit growth of 8.9%, increasing from ₹82.08 crore in Q2FY24 to ₹89.36 crore. This revenue increase, alongside profit growth, may offer insights to investors looking to invest in stocks within industrial and mobility solutions companies. Revenue for the quarter rose to ₹1,018.75 crore, a 15% increase from the previous year’s figure of ₹885.08 crore.

Operational performance and EBITDA margin

The operational performance for Q2FY25 was solid, with an EBITDA margin of 13.8%, up slightly from 13.7% in Q2FY24. While profit booking continues, the steady EBITDA margin reflects the company’s consistent performance, highlighting the potential for those who seek to invest in stocks that demonstrate operational stability and incremental growth.

Order book status as of September 2024

As of September 30, 2024, Jupiter Wagons held an order book valued at ₹6,643.66 crore, showcasing a healthy backlog that underscores the company’s business pipeline. This data point may interest those who invest in stocks, as a strong order book often reflects sustained demand in the near term.

Successful fundraising through QIP

In July, Jupiter Wagons successfully raised ₹800 crore through a Qualified Institutional Placement (QIP), strengthening its capital base. This fundraising initiative may signal strategic growth plans to potential investors looking to invest in stocks with an eye on long-term financial resilience.

Market trends and yearly gains

Despite recent profit booking, Jupiter Wagons has achieved a 50% gain over the year. The railway sector, however, has seen a wave of profit booking in recent months after a two-year bull run, impacting stock performance. This trend may be of particular interest to those considering share market investment in stocks, as they assess market corrections against overall yearly gains.