JUPITER WAGONS LIMITED
Jupiter Wagons Limited, formerly known as Commercial Engineers & Body Builders Co. Limited was incorporated in 2006. It is a part of the Kolkata-based Jupiter Group and a leading player in the Indian railway wagon manufacturing industry. JWL has manufacturing facilities located in Kolkata, Jamshedpur, Indore, Jabalpur and Baddi. Shri Vivek Lohia is the Managing Director of the company.
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JWL has a capacity to manufacture 8,00 wagons monthly and is backward integrated with a foundry shop to manufacture various components of a typical wagon like couplers, bogies, draft gears, CRF section, etc. JWL has JVs and partnerships with leading global companies such as Tatravagonka (Slovakia), DAKOCZ (Czech Republic), Kovis D.O.O. (Slovenia), Telleres Alegria S.A. (Spain), CAF (Spain) and LAF-CIM Group (France).
KEY STRENGTHS
• JWL stands out in India’s railway wagons sector by having its own captive foundry, a rarity among industry players. Additionally, it boasts one of the highest capacity complements and holds the distinction of being India’s largest manufacturer of 25-ton wagons.
• Value-added diversification strategy has resulted in a wide-ranging product portfolio, adding to its competitive edge.
• Possesses robust infrastructure, providing a solid foundation for its operations.
• With a strong brand and a proven track record, JWL benefits from experienced management, further bolstering its business operations.
• Enjoys technology alliances with globally renowned players, ensuring access to cutting edge expertise.
• Boasts strong technical capabilities, strengthened by strategic tie-ups and backward integration initiatives.
State-of-the-art Manufacturing Facilities
JWL has eight state-of-the-art facilities for production and testing spread across Kolkata, Jamshedpur, Jabalpur, Indore, Baddi and development Centre in Pune with cumulative inholding of 250+ acres., 4 kms siding in each of the wagon manufacturing facilities in West Bengal and Madhya Pradesh. They stand out as a highly integrated wagon manufacturing company, possessing captive CRF mills, an alloy steel foundry for producing bogies, couplers, draft gears, and brake system.
PARTNERSHIP
The company has robust partnership with some of the well known companies around the world :
Technology Partners
Tatravagonka Poprad is the trademark of quality and trust, built over 100 years of history and tradition in freight wagon production, endurance, and commitment. Tatravagonka has more than 40% of the European market share and an annual turnover of over € 350 million.
Budamar Logistics provides logistical support. It is a European leader in logistics, freight forwarding and multimodal transport. The company has a rich legacy in serving marquee customers with its diversified service portfolio.
JV Partners
GreenPower Motor Company was founded in 2010 with the goal of increasing EV adoption by making battery-electric buses and trucks affordable, durable, and simple to deploy. Greenpower provides commercial vehicles for delivery, public transportation, schools, vanpools, micro-transit, shuttles, and other applications. Products are ready and being tailored to the Indian market. The initial launch will consist of a 7/9 MT capacity urban goods carrier.
LAF has been in business for over 80 years and is now known around the world for its know-how and expertise with operations in over 120 countries. LAF designs, develops, and manufactures traction automatic couplers, drawbars, draught gear, heavy-duty traction devices, and buffers for both public and private railway networks. LAF owns Lloyds ABC Coupler and has a repository of over 6,000 coupler designs from around the world.
CAF is a pioneering company in railway mass transit system for passenger, based out of Spain with strong global footprint. Jupiter has established MOU as Indian manufacturing arm for CAF, aiming at various metro urban mass rapid transit system in India.
DAKO-CZ With over 205 years of experience, DAKO-CZ is a leading manufacturer of pneumatic, electromechanical, and hydraulic brake systems for rolling stock. The company is based in Temonice, Czech Republic, and has an annual turnover of 61 million Euro, 77% of which comes from foreign orders. The JV will provide high-speed passenger train brake systems in India. Indian Railways has already approved an axle-mounted disc brake system.
Kovis Livarna is a company with a long history in the foundry industry. Their expertise is in the production of castings from grey and nodular cast iron. This JV’s products include brake discs, axles, and gear boxes for railway rolling stock. Indian Railways has already approved brake-disc.
Talleres Alegra is a 108-year-old company that specializes in the production of railway track material and equipment. Continuous improvement in the design, manufacture, and technical assistance of fixed track material for both conventional lines and meter’s, trams, and high-speed lines. The joint venture will produce Weldable Cast Manganese Steel (CMS) Crossings for both BG (Broad gauge)and Metro. The JV has a ₹ 200 crores order book.
TSAW Dronesis a leading drone technology company established on June 26, 2019. It aims to provide safe, efficient, and effective drone solutions for various industries, including agriculture, surveillance, logistics, and surveying, to name a few.
PRODUCT PORTFOLIO
Over the last decades, JWL is comprehensive solutions provider in India for passenger coaches and freight wagons. Their expertise lies in the design and production of tailored load bodies for various commercial vehicles. Their wide range of products encompasses tippers, trailers for mining, infrastructure, and construction, as well as specialized vehicles such as municipal disposers, refrigerated vans, Defence vehicles, reconnaissance vehicles, RAF vehicles, water tankers, oil tankers, and more. Their business can be broadly categorized into two main divisions: Rail mobility and Road & Multimodal mobility.
Rail Mobility Business
They are one of the largest suppliers of wagons in India with the Indian Railways being their largest customer. They also have strong in-house capabilities for design and manufacture of commodity specific wagons for core sectors serviced by the railways.
Wagons
Open wagons, Container Carrier wagons, Covered wagons, Cement wagons, Coil Carrier wagons, Car Carrier wagons
Track Solutions
CMS crossings for Indian Railways, Weldable CMS crossings for IR & DFC, Explosion hardenable AREMA frogs (CMS crossings) for North American rail roads, Weldable CMS crossings for European Railways
Wagon accessories
Alloy steel cast bogies, High tensile Centre buffer couplers, High-capacity draft gears
Passenger coach accessories
Fabricated bogies, Balanced draft gears, Axle mounted disc brake system, Brake disc and split brake disc
Road and Multimodal Mobility Business
JWL focus on application-based load body development and design products based on clients standards and requirements. OEM services include design and manufacturing of water tankers, containers and various municipal applications for commercial vehicles based on the specifications provided by customers.
Commercial vehicles
Load bodies for commercial vehicles (tippers, trailers, tankers etc.) for mining, infrastructure, and construction etc.
Troop carrier and water bowser for defense sector.
Light recovery vehicles.
Fire engines, Ambulance & Municipal applications.
Containers
ISO Marine containers.
Refrigerated containers.
Special purpose containers.
Truck mounted containers.
Strong Customer Base
JWL nurture robust and enduring partnerships with numerous customers, establishing themselves as a trusted ally and strategic supplier. Their relationships span across esteemed Indian OEMs in the commercial vehicles industry, wagon leasing companies, automobile manufacturers, freight aggregators, shipping companies, container logistics firms, and more. Some of the prominent names are Indian Railways, Tata Motors, Mahindra, Ashok Leyland, VE Commercial Vehicles, Adani, Reliance Industries, Ministry of Defense, NTPC, Wabtec etc.
Key Financial Highlights- H1 FY24
Revenue from operations for H1FY24 stood at ₹ 1,63,248 lakh, up 129.2% (YoY)
EBITDA for H1FY24 at ₹ 21,851 lakh, up 172% (YoY)
EBITDA Margin improved to 13.4% in H1 FY24 from 11.3% in H1 FY23
PAT for H1FY24 stood at ₹ 14,518 lakh, higher by 280% (YoY), PAT Margin improves to 8.9%
EPS for H1FY24 is ₹ 3.66 per share of a face value of ₹ 10 each
Order Book of Rs. 5,95,265 lakh as on Sept 30, 2023
Key Developments and Future Prospects
• The production momentum of wagons for public and private customers continues to remain robust.
• The capacity of existing foundry at Kolkata Unit will be increased from 2,500 metric tones at present to
3,000 metric tones by the end of this fiscal year.
• A new foundry is scheduled to be established in Jabalpur over the course of next 18 months with a capacity of 2,000 tones, catering to both captive use and exports. This initiative is expected to yield cost savings in freight expenses.
• Indian Railway tender for 20,000 wagons has been issued and the timeline for submission is mid of
November.
• The wagon manufacturing capacity has been increased to 700 wagons per month at present. Once the
expanded capacity of foundry is made available, it is expected that production capacity will increase to 800 wagons per month.
• With handover and integration activities nearing completion, it is anticipated that Stone India will initiate
its operational activities in Q4FY24.
• Electric Mobility: the vehicle is scheduled for testing in November, and is progressing as planned for its
commercial launch in the fourth quarter of this fiscal year.
• The Company is in the process of raising funds aggregating up to Rs 70,000 lakhs through Qualified
Institutions Placement (“QIP”). The Board of Directors of the Company have passed the Resolution in this
regard dated 5 September 2023.
RISK
-Dependence on Railways: IR being the major customer for Wagons, any adverse impact on budget allocation of Railways will impact the order flow.
-Cyclicality of the commercial vehicle industry – The demand for heavy vehicles is closely linked to overall industrial growth and is vulnerable to cyclicality in the commercial vehicle industry.
-Delays in execution of orders (particularly orders obtained through competitive tenders) can have a negative impact on profitability.
-Raw material costs – Steel accounts for a major portion of the raw material costs and any increase in steel prices can have adverse impact on the profit margins.
-The Company depends on load body business from certain OEM customers. These OEMs can develop more than one supplier to minimize their risk. Increase in interest rate/cost: Any increase in interest rate will adversely affect the Company.
Sector: Industrials
Market Price: Rs. 333.0 as on today
FV: Rs 10/-
Stock Name: Jupiter Wagons LTD
BSE Code: 533272 , NSE Code: JWL
Market Cap.: Rs 22,164 Cr
Book Value: Rs. 20.09
Segment: Railway Wagons
Incorporation: 2006
Headquarters: Kolkata
