10% Dividend; Not IRFC Or RVNL, But This Midcap Railway Stock With ROE 22.10%, Turned Ex-Dividend; BUY Time?

There is one railway stock trading below Rs 500 apiece, has turned ex-dividend on October 7. This railway stock has surged by nearly 47% YTD, and has a strong return on equity of 22.10%. It is neither IRFC or RVNL, the two behemoth of Indian Railways, but instead midcap Jupiter Wagons in the private sector. On the ex-date, the stock dropped and closed in red.

Jupiter Wagons Share Price:

On the ex-date, Jupiter Wagons share price closed at Rs 469.05 apiece, down by 4.4% on BSE with market cap of Rs 19,911.08 crore.

The stock has corrected sharply from its 52-week high of Rs 748.05 apiece, while its 52-week low is at Rs 266.70 apiece. In a year, the stock surged by over 57%.

Jupiter Wagons Dividend:

The railway company turned ex-dividend on October 8, for its interim dividend payout of 10% worth Rs 1 per share. In FY24, the company delivered 6% dividend valuing to Rs 0.6 per share.

BUY/SELL Jupiter Wagons?

In its latest report, Prabhudas Lilladher said, "JWL has retraced almost 50% from the peak zone of the 750 level and recently consolidated near the important 100 period MA level of 535 with signs of improvement of bias indicated and further rise expected."

PL's note added, "the stock is anticipated to retest near the previous peak zone of 750, with the RSI also indicating a positive turnaround after the slide, which can propel the stock to carry on with the positive move. With the chart looking good, we suggest buying the stock for an upside target of 670 - 740 while keeping the stop loss of 520."

About Jupiter Wagons:

Jupiter Wagons is is a premier manufacturer of railway wagons, components for passenger coaches, alloy steel casting for rolling stack and track. The group also manufactures application based load bodies for commercial vehicles, other product include ISO marine containers, refrigerated containers etc.

As per the website, Jupiter Wagons is he most integrated Railway Engineering Company, Catering to the clientele spread across Indian Railway, Private wagon aggregators, commercial vehicles OEMs, Indian defence and logistics companies. It regularly exports to North American market as well.