Shares of this multibagger stock under the ‘small-cap’ category jump up to 6 percent after positive sentiments pertaining to the acquisition of an Auto Ancillary entity.
With a market capitalization of Rs 10,509.54 crores, the stocks of Ramkrishna Forgings Limited opened their trading hour on Tuesday at Rs 657.65 and currently trade at Rs 657.30.
The company’s scrip witnessed an intra-day high, also recorded as the company’s fresh 52-week high mark, of Rs 688.80 indicating a gain of around 6 percent compared to the previous close of Rs 649.40 apiece.
Such movements in the stock prices of the company were observed after the company published a regulatory filing with the Bombay Stock Exchange (BSE) dated 21st August 2023.
The filing informed that the Principal Bench of the National Company Law Tribunal (NCLT) has provided its verbal approval pertaining to the acquisition of “JMT Auto Limited” under the corporate insolvency process.
The acquisition offer was made by Ramkrishna Forgings Limited in January 2023 and the same was approved by the committee of creditors of JMT Auto by way of E-voting.
Digging into the financial performance during the recent quarter periods, the company witnessed its revenues staying uniform at Rs 892 crores during the quarter ended March 2023 and June 2023. Despite the same, the company has been able to increase the after-tax profits from Rs 68.45 crores to Rs 78.53 crores during the same time horizon.
Year-To-Date, the company’s stock has proven to be successful in delivering multibagger returns of 150 percent to its stakeholders, i.e., a 1 Lakh investment would have converted to Rs 2.50 Lakhs during the YTD period if someone would have invested in the stock.
As per the shareholding data available for the quarter ended June 2023, the company’s Promoters hold a 46.27 percent stake, and the Foreign Institutional Investors (FIIs) hold a considerable stake of 16.34 percent.
Ramkrishna Forgings Limited is a company based in India that is engaged in the manufacturing process as well as the sale of forged components. The company serves a wide range of sectors including railways, automotive, oil & gas, and many more. It has manufacturing facilities built in Jharkhand, West Bengal, etc.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
