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Check Before You Invest : Jupiter Wagons Ltd

BSE: 533272 NSE: JWL ISIN: INE209L01016
  |   Sector:  Automobiles   |   Industry:  Railways Wagons/Coaches

Snapshot

Q.1 Which industry/sub-sector does Jupiter Wagons Ltd belong to?
Jupiter Wagons Ltd belongs to the Automobiles sector, operating specifically within the Railways Wagons/Coaches segment.
Q.2 Is Jupiter Wagons Ltd a good quality company?
Jupiter Wagons Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Jupiter Wagons Ltd undervalued or overvalued?
Jupiter Wagons Ltd appears Somewhat overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 49.02 52.64
Price to Book 3.96 5.38
Price to Sales 4.08 3.98
EV to EBITDA 28.94 29.41
Q.4 Is Jupiter Wagons Ltd a good buy now?
Jupiter Wagons Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Jupiter Wagons Ltd?
Jupiter Wagons Ltd revenue growth is 6.3% for FY-2025, which is below its 5-year CAGR of 98.45%, indicating slower growth.

Q.2 Gross Profit margin of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Gross profit margin which is the profit after deduction of direct costs, is 13.7% for FY-2025, which is above its 5-year median of 11.1%, indicating increasing margins.

Q.3 Operating Profit Margin of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.16% for FY-2025, which is above its 5-year median of 12.28% indicating increasing margins.

Q.4 Net Profit Margin of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Net Profit Margin is 9.64% for FY-2025, is above its 5-year median of 6.06%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 13.7 11.1
Operating Profit Margin (%) 14.16 12.28
Net Profit Margin (%) 9.64 6.06

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Return on Asset is 11.19%, which is above its 5-year historical median of 9.4%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Return on capital employed is 21.6% for FY-2025, which is in line with its 5-year historical median of 21.6%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Return on equity is 17.19% for FY-2025, which is in line with its 5-year historical median of 16.81%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Cash conversion cycle is 88 days, above its 5-year historical median of 62 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.16 1.54
ROE (%) 17.19 16.81
ROCE (%) 21.6 21.6
Cash Conversion Cycle 88 days 62 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Debt-to-Equity ratio is 0.15, which is lower the industry average of 0.21, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Jupiter Wagons Ltd?
Jupiter Wagons Ltd Debt to cash flow from operations is 1.97, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Jupiter Wagons Ltd?

Q.1 Promoter shareholding and pledge status of Jupiter Wagons Ltd?
Promoters hold 68.31% of the Jupiter Wagons Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Jupiter Wagons Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Jupiter Wagons Ltd vs industry peers?
Jupiter Wagons Ltd revenue CAGR is 98.45%, compared to the industry median CAGR of 21.10%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 6.3 21.1
Gross Profit Growth (%) 12.3 33.9
Operating Profit Growth (%) 11.6 28.1
Net Profit Growth (%) 12 -
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.16 0.98
ROE (%) 17.19 11.28
ROCE (%) 21.6 18.14
Cash Conversion Cycle (days) 87.76 62

Valuation & price assessment

Q.1 Stock return of Jupiter Wagons Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 31.9% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
31.9% 66.2% 34.7% -30.3%
Q.2 Valuation ratios of Jupiter Wagons Ltd vs historical?
The current P/E ratio of 49.02 is lower than its historical median of 52.64, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 49.02 52.64 52.62
Price to Book 3.96 5.38 4.27
Price to Sales 4.08 3.98 2.65
EV to EBITDA 28.94 29.41 20.97

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