The shares of the automobile component manufacturer gained up to 1.18 percent after the company received approval for setting up an Aluminium Forging Facility at Jamshedpur worth Rs 57.5 crore.
With a market capitalization of Rs 17,309.32 crore, the shares of Ramkrishna Forgings Ltd were trading at Rs 957.50 per share, increasing around 0.98 percent as compared to the previous closing price of Rs 956.70 apiece.
Reason for Rise:-
Today, the shares of the company have seen positive movement after Ramkrishna Forgings Ltd received board approval for setting up an Aluminium Forging Facility at Jamshedpur, and the Board of Directors has also approved an investment of Rs 57.5 Crores to set up the facility, which will primarily cater to EV Market.
Moreover, the project will be set up with a total installed capacity of 3,000 MT per annum and is expected to be commissioned by Q2 FY26. At the optimum capacity, the project will generate additional revenue of Rs.175 Crores per annum.
However, these developments underscore the company’s commitment to expanding its global footprint, diversifying its business portfolio, and delivering sustainable growth. This strategic initiatives will position us for continued success and create long-term value for our stakeholders.
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Additionally, the company also entered into a Share Purchase Agreement to sell a 100% stake in its Wholly-owned Subsidiary, Globe All India Services Limited to Yatra Online Limited, for a cash consideration of Rs. 128 Crores.
Furthermore, Globe All India Services has evolved into one of India’s leading Hospitality Management Companies, with a diversified portfolio spanning Corporate Travel, MICE, Leisure, and Car Rental.
Financial Performance:-
Examining the company’s financial performance, revenue increased by 13 percent from Rs 892 crore in Q1FY24 to Rs 1,005 crore in Q1FY25. During the same period, net profit zoomed by 3 from Rs 79 crore to Rs 81 crore.
Order Inflow & management comments:-
Ramkrishna Forgings Ltd received a significant order inflow, amounting to Rs. 1,679 crore to be executed over four years. The order book also includes an undercarriage business order from a metro car in the railway segment, contributing to our diversification into the non-auto space.
In addition, the Board of Directors has also approved the acquisition of Resorts Libertad, S.A. de C.V. in Mexico. This acquisition marks a significant step in its strategic expansion, and the company also plans to commence its machining and warehousing operations from Q3 FY25 onwards.
Company Snapshot:-
Ramkrishna Forgings Limited operates in two segments: Forging Components and Others. The Forging components segment produces and sells forged automobile components, sanitization, and cargo business, including services for tours and travels.
Written by:- Abhishek Singh
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