JWL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 4.4

📊 Core Financials & Profitability

Revenue & Profit Trends: Despite a sharp QoQ drop in PAT from ₹97.3 Cr to ₹32.9 Cr (−63.2%), JWL has delivered a stellar 125% CAGR in profits over the last 5 years

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Return Metrics

ROE: 17.0% and ROCE: 21.5% — excellent, indicating strong capital efficiency.

EPS: ₹7.46 — decent for a ₹345 stock, supporting valuation.

Debt Profile: Debt-to-equity at 0.14 — very healthy, offering financial flexibility.

Dividend Yield: 0.29% — modest, but adds shareholder value.

💸 Valuation Indicators

Metric Value Insight

P/E Ratio 46.2 Slightly below industry PE of 49.5 — fairly valued.

P/B Ratio ~5.32 Expensive relative to book value ₹64.8.

PEG Ratio 0.49 Attractive — growth is reasonably priced.

🔍 Conclusion: Valuation is fair with a growth-friendly PEG. The stock is not cheap, but justified by strong fundamentals and sector tailwinds.

🚆 Business Model & Competitive Edge

Core Operations: Jupiter Wagons Ltd is India’s largest freight car and wagon builder, manufacturing rail wagons, passenger coaches, and commercial vehicle bodies

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Strategic Strengths

₹7,000 Cr order book and ₹1,500 Cr planned investment signal aggressive expansion

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Diversified product mix across rail infrastructure and logistics.

Operating margins consistently around 13–14%, with improving efficiency

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📉 Technicals & Entry Zone

RSI: 57.7 — neutral, no strong momentum.

MACD: 0.65 — mildly bullish.

DMA Levels: Price near 50-DMA and below 200-DMA — short-term consolidation.

📌 Suggested Entry Zone: ₹330–₹345 — near 50-DMA, offering a balanced entry point.

🕰️ Long-Term Holding Guidance

Hold if Invested: Strong fundamentals, low debt, and infrastructure tailwinds support long-term value.

Buy on Dips: Especially if price nears ₹330 or RSI dips below 50.

Monitor: Execution of order book, margin trends, and capex deployment.

For deeper insights, you can explore JWL’s financial breakdown and peer comparison or review its long-term share price targets. Let me know if you’d like a forecast model for FY30 or a comparison with Titagarh Rail next.

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www.screener.in

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shareprice-target.com

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