On June 12, Jupiter Wagons shares rose 2% in the morning after the National Company Law Tribunal (NCLT) permitted the Kolkata-headquartered coach manufacturer Jupiter Wagons to buy a controlling stake in Stone India.

At 9:17 am, the railway wagon maker’s stock was trading at Rs 135.35, up 1.61%. The stock traded a bit away from its 52-week high of Rs 139.55.

On June 8, the NCLT Bench in Kolkata approved the resolution plan given by Jupiter Wagons for getting a controlling stake in Stone India under the Corporate Insolvency Resolution Process, the company mentioned in an exchange filing.

As per the resolution idea, Stone India shall be a subsidiary of Jupiter Wagons, the company adds.

Robust growth predictions and attractive estimates of 17.4 times and 12.8 times its FY24 and FY25 EPS make Jupiter Wagons an evolving player in small cap capital goods space, the broking and research firm Sharekhan said.

The business is renovating itself into a constant growth play by restoring strategies such as enhancing wagon manufacturing volumes, solidifying its position in wagon accessories by unveiling new products and increasing into the fast-growing category of light electric commercial vehicles, the brokerage firm added.

Sharekhan witnessed the return profile improving considerably with the hope that Return on Equity and Return on Capital Employed will be at 24.6% and 29.1% by FY25 as compared to 15.0% and 20.8% in FY23.