Jefferies cuts target price for Jupiter Wagons, maintains Underperform after Q1 earnings

Domestic brokerage firm Jefferies has cut the target price for railways coach manufacturer Jupiter Wagons to Rs 185 from Rs 210, citing the company’s weak Q1 earnings. The brokerage has maintained an Underperform rating on the stock, cutting FY27E-29E EPS by 6%-20% to reflect the Q1 miss. In a base-case scenario, Jefferies estimates a 23% FY26-30E consolidated EPS CAGR and a 15% standalone EPS CAGR, despite weak wagon sales growth and some uptick in container sales. The brokerage expects Jupiter Wagons’ wheel manufacturing plant to be commissioned by the end of FY28, which should support consolidated revenue growth and margins.