Shares of Jupiter Wagons fell 3% to Rs 336.70 in Monday’s trading session, following profit booking after a five-day rally that saw the stock surge nearly 37%. The recent gains were fueled by positive investor sentiment after the company’s promoter increased its stake in the firm.

The rally came on the back of a disclosure that promoter Tatravagonka A.S. acquired additional shares via the conversion of convertible warrants issued under a previously approved preferential allotment. As part of this transaction, 28.72 lakh shares were allotted at Rs 470 each, totalling approximately Rs 134.99 crore. The acquisition was completed on 19 December 2025 and disclosed the same day in line with SEBI’s insider trading rules.

Before the allotment, Tatravagonka held 7.93 crore shares, representing 18.69% of the company. Post-acquisition, the holding increased to 8.22 crore shares, lifting the promoter’s stake to 19.24%.

From a valuation standpoint, the stock appears richly priced. It has a Price-to-Earnings (P/E) ratio of 52.72, indicating the stock is trading at a high multiple of its earnings. The Price-to-Book (P/B) ratio of 5.33 suggests the shares are significantly above their book value. Over the past year, the stock has traded between a 52-week low of Rs 247.15 and a 52-week high of Rs 524.55, reflecting a wide price range.

Technical indicators point to a potential short-term correction. The 14-day Relative Strength Index (RSI) is at 74.1, a level generally considered overbought, signalling that the stock may face some selling pressure.

The stock is trading above six out of eight key Simple Moving Averages (SMAs), including most short- and medium-term averages. However, it remains below the 150-day and 200-day SMAs, which are long-term trend indicators, suggesting that while short-term momentum is strong, long-term resistance may cap gains.

In the recent September 2025 quarter, shareholding data shows a slight reduction in stakes by promoters and major institutional investors. Promoters marginally trimmed their holdings from 68.11% to 68.09%, maintaining strong control over the company.

Foreign Institutional Investors (FIIs) also reduced their stake slightly, from 4.45% to 4.42%, reflecting minor overseas selling. Meanwhile, Mutual Funds (MFs) cut their holdings more noticeably, from 1.31% to 0.95%, suggesting some domestic institutional profit booking or portfolio rebalancing. Despite these reductions, promoters continue to hold a dominant position, ensuring strategic control of the company remains largely unaffected.

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