This S&P BSE Smallcap stock made 52 week high after receiving an order in North America. The stock has a market cap of Rs. ~9,545 crore and has been on an uptrend since ~July 2022 – increasing 3.8x since. Buoyant momentum and investors’ sentiment is emphasized by its price currently being ~41% above its 20 day moving average and ~255% above its 200 day moving average. Trading volumes today have exceeded weekly average, currently in the second decile over 4 lakh.
Ramkrishna Forgings Ltd (”Ramkrishna”) said in a filing that it has successfully secured a substantial business contract valued at USD~13.65 million or Rs. ~113.6 crores per year for supplying Rear Axle and Transmission Components for Class 5, 6, and 7 vehicles, further bolstering its North American Portfolio. The stock rose ~2.5% post holiday on Wednesday, making a new 52 week high.
Mr. Lalit Khetan, Whole Time Director & CFO, Ramkrishna Forgings Limited said that the contract is a testament to their commitment toward expanding presence across North America and in the said vehicle classes’ market segments. He also stated that he is looking forward to opportunities similar to it in the LCV segment and in the geography.
Ramkrishna is a multibagger and gave industry leading stock returns at ~218% over a 1 year period and ~72% YTD. That means, if you invested Rs. ~1 lakh into Ramkrishna 1 year prior, it would have returned Rs. ~3.2 lakh. The company is supported by strong fundamentals, indicated by ~38% revenue and ~195% net profit 3 year CAGR. Key investors in the company include Enam Securities Pvt Ltd – 5.8%, Massachusetts Institute of Technology – 3.8%, Birla group – 3.4%.
Ramkrishna Forgings was incorporated in 1981 with the objective to manufacture forged products and has state-of-the-art manufacturing facilities at Jamshedpur along with offices & warehouses in USA, Mexico, Turkey & Belgium. It has an installed capacity of ~187k at ~87% utilization, serving ~23 countries worldwide.
Written by Sandeep N
