The rally came after the company disclosed that its promoter, Tatravagonka A.S., acquired additional shares through the conversion of convertible warrants issued under a previously approved preferential allotment.
As part of the transaction, Tatravagonka A.S. was allotted 28.72 lakh shares at Rs 470 each, amounting to approximately Rs 134.99 crore. The acquisition was completed on December 19 and disclosed the same day in compliance with SEBI’s insider trading regulations.
Prior to this allotment, the promoter held 7.93 crore shares, or 18.69% of the company. After the transaction, the holding rose to 8.22 crore shares, boosting the promoter’s stake to 19.24%.
An increase in promoter holdings is generally seen as a positive signal, as it indicates the promoter’s confidence in the company’s long-term growth prospects.
Currently, the stock trades at Rs 345, compared with its 52-week high of Rs 544.80. Over the past three years, Jupiter Wagons has delivered a strong 285% rally.
Valuation indicators show that the stock is trading at a price-to-earnings (P/E) ratio of 50.76 and a price-to-book (P/B) ratio of 5.15, suggesting that the market is pricing the company at a premium relative to its earnings and book value.On the technical side, the 14-day Relative Strength Index (RSI) stands at 71.5, pointing to an overbought condition that could signal a potential short-term pullback. In terms of moving averages, the stock remains largely bullish, trading above six of eight key simple moving averages, although it is still below the 150-day and 200-day SMAs.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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