16% Dividend YTD: Not RITES, But This BSE-500 Listed Railway Stock Is Diwali Pick; Anand Rathi Sets Rs 760/TP

A midcap railway stock, trading under the BSE-500 listed basket, is an attractive bet during the Diwali festival, with a target price set at Rs 760. There is a potential for over 45% upside in this railway stock. Who is it? Not the BSE-500 listed railway giant RITES Ltd, but another stock Jupiter Wagons. Currently, the stock is below Rs 530 levels. Jupiter Wagons is a multi-bagger with its 5-year gains of over 3,572%.

Diwali festival this year is going to kick-start on October 28, with 1-hour Muhurat trading to take place on November 1, 2024. There is a huge demand for stocks and precious metals during this festival as it is seen as an auspicious occasion for investment to bear fruitful gains in the future.

Brokerage Anand Rathi has selected 7 stocks to buy this Diwali 2024. One of them is Jupiter Wagons.

Both Jupiter Wagons and RITES LTD are listed under the BSE-500 basket, and both are midcaps engaged in the business of the railway sector. YTD, Jupiter has outperformed with gains of 63.5%, while RITES has surged by nearly 20.6%.

Anand Rathi on Jupiter Wagons:

According to the brokerage, for many months, most of the railway-related stocks have been trading in a corrective mode.

It added, "If we talk about Jupiter Wagon then the stock has eroded around 40% of its
price from the top of 746. At this juncture, we are witnessing that the stock is turning from its 200 DEMA."

Additionally, Anand Rathi's note said, "There is a breakout from the falling trend line on the daily chart and the stock is very much near to its previous demand zone. Investors / Traders can accumulate the stock with a time frame of around 1 year."

That being said, the brokerage has recommended BUY with entry-level to range from Rs 525 - 495, while two sets of targets are provided on Jupiter Wagons. Target 1 is Rs 700 and target 2 is Rs 760. While the stop loss is around Rs 390.

Jupiter Wagons Share Price:

Currently, the stock is at Rs 522.90 apiece, marginally up on BSE. The market cap is around Rs 22,197 crore. The price-to-equity ratio is at 61.93%, while the return on equity is at 22.10%.

The stock has carried only dividend payouts. Since September 2023, the stock has delivered up to 4 dividends. In 2024 alone, the stock paid up to 16% dividends worth Rs 1.60 per share.

About Jupiter Wagons:

Jupiter Wagons Limited (JWL) is a provider of comprehensive mobility solutions, with diverse offerings across Freight Wagons, Locomotives, Passenger Coaches (LHB), Braking Systems, Metro Coach, Commercial Vehicles, ISO Marine Containers, and products such as Couplers, Draft Gears, Bogies, and CMS Crossings. JWL has manufacturing facilities located in Kolkata, Jamshedpur, Indore, Jabalpur and Aurangabad with full backward integration to its foundry operations. The Group has established partnerships with leading global companies such as Tatravagonka (Slovakia), DAKO-CZ (Czech Republic), Kovis Proizvodna (Slovenia), Telleres Alegria S.A (Spain), Frenoplast S.A (Poland) and LAF-CIM Group (France).