The shares of the forged components manufacturer for automobiles fell up to 7 percent after the company’s approval to supply power train components to the USA’s largest Electric Passenger Vehicle Producer was put on hold.
With a market capitalization of Rs 13,656.74 crore, the shares of Ramkrishna Forgings Ltd were trading at Rs 754.20 apiece, decreasing around 2.42 percent as compared to the previous closing price of Rs 773.30 per share.
According to the corporate filing, as of April 18, 2024, Ramkrishna Forgings Ltd. has secured clearance to sell power train components to the United States’ leading Electric Passenger Vehicle Producer, but the project has been placed on hold.
According to the company’s financials, sales climbed by 36% from Rs. 777 crores in Q3FY23 to Rs. 1,058 crores in Q3FY24. During the same time frame, Net Profit grew by 43% from Rs 61 crores to Rs 87 crores.
The company has annualized installed capacity after the commissioning of the Hollow Spindle Line, a new 7000 Ton Press Line, a 2000 Ton warm/hot Forming Press, and a fabrication facility is 187,100 MT.
The firm has production plants in Jamshedpur, USA, offices in Detroit, Toluca, and Monterrey, Mexico, and warehouse facilities in Hagerstown, Louisville, and Westerloo in Belgium.
As of Q3FY24, the business plans to boost capacity by 65,000 T by building a cold forging line, an 8,000T hot forging press line, and minor press lines. Increasing capacity and leveraging operations can boost profitability.
The stock has delivered 22.77 percent in the last six months but a multi-bagger return of 137.18 percent in a year. A shareholder’s investment of Rs. 1 Lakh in the company would be worth Rs. 2.37 Lakh in a year.
Ramkrishna Forgings Ltd primarily manufactures and sells forged components for autos, railway trains and coaches, and engineering equipment. It is the second-largest forging company in India.
Written by:- Abhishek Singh
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