Jupiter Wagons shares rose 253% in six months, beat RVNL, Titagarh Rail, IRFC; how strong is the uptrend?

Shares of multibagger Jupiter Wagons Ltd have outperformed other railway stocks in the last six months. Jupiter Wagons stock has surged 253% in the last six months. The railway sector stock, which closed at Rs 89.86 on March 27, 2023 rose to Rs 317.60 on the BSE on September 27, 2023, delivering 253% returns to investors. On the other hand, Titagarh Rail Systems shares zoomed 223% and Texmaco Rail stock gained 208% since March 27.  Other railways peers such as Rail Vikas Nigam Ltd (RVNL), IRFC  and IRCON International could manage 153%, 190% and 170% returns, respectively in the last six months.  

In comparison, Sensex has risen 14.68 per cent during the period.    

Jupiter Wagons shares were stuck in the upper circuit of 5% at Rs 317.60 on Wednesday against the previous close of Rs 302.50 on BSE. Jupiter Wagons stock has gained 358.63% in a year and risen 229.63 per cent in 2023.    

Total 0.23 lakh shares of the firm changed hands amounting to a turnover of Rs 73.31 crore on BSE today. The market cap of the firm rose to Rs 12,687.71 crore on BSE.    

The stock touched a 52-week high of Rs 412.50 on  September 6, 2023 and a 52-week low of Rs 66.90 on September 27, 2022.     

Jupiter Wagons stock has a one-year beta of 1.0, indicating high volatility during the period.  

 Here’s a look at what technical analysts said on the outlook of the stock.  

Jupiter Wagons' resistance level lies at Rs 395 and support level at Rs 310, said Laxmikant Shukla, Technical Research Analyst at YES Securities.  

"Jupiter Wagons was in a strong uptrend since April 2021, where price rallied from Rs 15 to Rs 411 levels. After forming an all-time high at Rs 411, the stock has been encountering selling at every intermediate rally, indicating the bulls are losing grip. Also, on the weekly chart, the stock has formed an ‘Evening Doji Star’ candlestick pattern. The pattern would be confirmed once the stock price decisively breaks below Rs 310 level. A breakdown from the said pattern would signal a caution on the uptrend and the trend is likely to transit from ‘bullish’ to ‘bearish’, " added Shukla.  

Abhijeet from Tips2trades said, "Jupiter Wagons looks bullish on the Daily charts with next resistance at 349.9. Investors can hold their buy positions as long as daily support of 274 is not broken on a closing basis." 

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, "The stock has some erratic chart patterns with series of upper and lower circuits … can say that recently after sliding from the peak zone of Rs 411 levels, has made a higher bottom formation pattern on the daily chart taking support near Rs 275 zone and indicated a pullback for further rise anticipated moving past the 50EMA level of Rs 292. The trend would improve after a decisive move past Rs 340 zone to carry on the momentum further ahead." 

In terms of technicals, the relative strength index (RSI) of Jupiter Wagons stands at49.4, signaling it's trading neither in the overbought nor in the oversold territory. Shares of Jupiter Wagons are trading lower than the 10 day 20 day and 30 day but higher than the 50 day, 100 day and 200 day moving averages.    

The firm logged a 387.59% rise in net profit to Rs 62.9 crore for the quarter ended June 2023 as against net profit of Rs 12.9 crore during the quarter ended June 2022. Revenue zoomed 154.68% to Rs 755.4 crore in the quarter ended June 2023 as against Rs 296.6 crore during the quarter ended June 2022.    

On a quarter-on-quarter basis, profit zoomed 60.45% from Rs 39.2 crore in the March quarter of the previous fiscal. Revenue rose 6% from Rs 712.7 crore in the March 2023 quarter.     

On an annual basis, net profit zoomed 143.75% to Rs 120 crore for the fiscal ended March 2023 compared to Rs 50 crore for the fiscal ended March 2022. Revenue climbed 75.45% to Rs 2073 crore in the March 2023 fiscal against Rs 1181.75 crore for the fiscal ended March 2022.     

Jupiter Wagons is engaged in the business of manufacturing of railway wagons, passenger coaches, wagon components and castings in India. The company's integrated facilities are engaged in the manufacture of railway wagons, high-speed bogies and railway castings.   

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.  

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