Undervalue Stocks: Both of these companies operate in rapidly growing industries and possess strong fundamentals. They have the potential to deliver solid returns to investors in the near future. Currently, there is a favorable opportunity to invest in these two companies, each belonging to different sectors. Their high financial growth positions them as potential multibaggers.
Additionally, the government is placing significant emphasis on these sectors, particularly within the railway industry, where investors have experienced substantial returns over the past two years.
1) Jupiter Wagon Ltd
Jupiter Wagon Ltd is a small-cap company operating in the railway sector, experiencing a downward trend in its share price after reaching a high of ₹740. Currently, the stock is trading at ₹503, reflecting a correction of approximately 33% from its 52-week high, presenting a compelling opportunity for long-term investment.
Business Overview
Jupiter Wagon Ltd is positioned within the Indian railway sector, which is rapidly growing due to expanding railway infrastructure. Investors looking toward 2030 will find significant opportunities in this field. The company is a leading mobility solution provider and specializes in manufacturing railway freight wagons. It is recognized for its rapid growth within the railway segment, particularly in producing load bodies for commercial vehicles.
In addition to railway wagons and wagon accessories, Jupiter Wagon is set to expand into manufacturing passenger railway coaches and metro coaches in the near future. The company also offers comprehensive track solutions and has a robust business in the commercial vehicle segment, supplying vehicle bodies and large containers to major companies. Furthermore, Jupiter Wagon is venturing into the production of commercial electric vehicles, establishing itself as a multibagger opportunity across various sectors.
- Current Share Price: ₹500
- Market Capitalization: ₹21,590 crore
- 52-Week High: ₹748
- 52-Week Low: ₹267
Shareholding Pattern
The promoters of Jupiter Wagon Ltd hold approximately 68% of the company’s shares, while foreign investors own a substantial 5.34%. Domestic investors also have a stake of over 2%.
Returns
Jupiter Wagon Ltd has delivered an impressive 40% return over the last six months. Since its listing on June 24, 2022, the stock has provided a remarkable return of about 870% to its investors over the past two years. The company has experienced a profit growth of around 46% compared to the previous year. If investors commit to this company for the long term, they may see similar returns to those achieved by PSU stocks in the railway sector, such as RFC, RVNL, and IRCON International. However, this article is for informational purposes only and does not constitute a buy or sell recommendation.
2) State Bank of India Limited
The State Bank of India (SBI) is a leading banking giant in India that has provided multibagger returns to its investors. Recently, however, the stock has been on a decline. Currently, the stock is trading below its intrinsic value, presenting a significant opportunity for investors. After reaching a high of ₹912, SBI’s shares are now trading at ₹777, reflecting a discount of approximately 15% from its 52-week high.
As the largest bank in India, SBI is expected to yield substantial returns for its investors and experience considerable business growth in line with the projected expansion of the Indian economy. SBI also provides annual dividends to its shareholders, with a dividend yield of 1.73%. The shareholding structure includes 57.54% held by promoters, about 11% by foreign investors, and 23% by domestic investors. Long-term investors have the potential to earn significant returns by investing in SBI.
Business Overview
SBI is a government-owned bank and the largest in India, offering a wide range of services, including SBI General Insurance, SBI Life Insurance, SBI Mutual Fund, SBI Card, and various loan products. It also provides banking services such as savings accounts, current accounts, debit and credit cards, and loans. Given its comprehensive service offerings, SBI presents a promising opportunity for long-term investors.
- Current Share Price: ₹777
- Market Capitalization: ₹6,85,000 Cr
- Stock P/E Ratio: 10.14
- 52-Week High: ₹915
- 52-Week Low: ₹543
Returns
State Bank of India has delivered an impressive return of approximately 164% to its investors over the last five years. The bank has the potential to continue providing multibagger returns in the future. Long-term investments in this company could yield significant gains. However, please note that this article is for informational purposes only and does not constitute a buy or sell recommendation.
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