Jupiter Wagon shares fall over 4% after board approves QIP launch

Jupiter Wagons shares dropped by 4 per cent to ₹694 in Tuesday's trade on BSE, following the firm's announcement that its Fund Raising Committee had approved the launch of a qualified institutional placement (QIP), setting the floor price at ₹689.47 per equity share.

"We further wish to inform you that the Fund Raising Committee has fixed the ‘Relevant Date’ for the purpose of the Issue, as July 08, 2024, and accordingly the floor price in respect of the issue, based on the pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations is ₹689.47/- per equity share," the company said in an exchange filing.

Following the committee's meeting on July 8, 2024, Jupiter Wagons filed its preliminary placement document with both the BSE and the National Stock Exchange of India (NSE). According to SEBI regulations, the company may offer a discount of up to 5% on the issue's floor price.

In the quarter ending March 31, 2024, Jupiter Wagons reported a consolidated net profit of ₹105 crore, marking a nearly three-fold increase compared to the ₹39 crore profit reported a year earlier. In the preceding quarter, the company achieved a net profit of ₹81.5 crore.

Total consolidated revenue for the quarter amounted to ₹1,127 crore, up from ₹712.7 crore reported in the corresponding quarter of the previous fiscal year. In the quarter ended December, total revenue stood at ₹900.8 crore.

The railway stock has delivered exceptional returns over the past year, outperforming the Sensex by a wide margin with multibagger returns of 297%, compared to the Sensex's 23% over the same period. In 2024 alone, this stock has generated nearly 120% returns.

According to Trendlyne data, the stock's relative strength index (RSI) currently stands at 66.9. Typically, an RSI below 30 indicates oversold conditions, while above 70 suggests overbought conditions. Additionally, the Moving Average Convergence Divergence (MACD) is at 41, situated above its center line but below the signal line.

Additionally, the stock price is above its 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages, underscoring the strong upward momentum.