Ramkrishna Forgings share hits 52-week high on order win from European OEM
Ramkrishna Forgings Limited has received PPAP clearance (Parts Production Approval Process) and confirmation to launch an order worth Rs 132 crore from a European OEM. The order is to be implemented for 3 years distributed equally.
- Jul 13, 2021,
- Updated Jul 13, 2021 5:57 PM IST
Share of Ramkrishna Forgings Limited (RKFL) rose 2 per cent to hit a fresh 52-week high of Rs 750.00 on BSE after the company announced it has received a multi-year order from a European OEM worth Rs 132 crore.
Ramkrishna Forgings Limited has received PPAP clearance (Parts Production Approval Process) and confirmation to launch an order worth Rs 132 crore from a European OEM. The order is to be implemented for 3 years distributed equally.
The share ended 0.99 per cent higher at Rs 743.20 against the previous close of Rs 735.95. It has delivered 359 per cent return in the last 12 months and risen 55 per cent since the beginning of this year.
RKFL's share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, 200 day moving averages. Market cap of the firm rose to Rs 2,376.60 crore on BSE.
"We continue building strong order book in international markets given our business operations that are meticulously aligned to stringent global benchmarks. Generally, the margin in exports business tend to be better and now since domestic market have also started opening up after 2nd wave of Covid, the company hopes to achieve better sales and profitability both from domestic as well as international markets in upcoming quarters," Mr. Naresh Jalan, Managing Director, Ramkrishna Forgings Limited
"This order improves revenue visibility and profitability over the next 3 years. Our ability to develop customised products coupled with technology spending and efficient utilization of our facilities is leading us to develop our business and we continue to expand domestically and internationally at this pace in the coming future," he added.
According to MarketsMojo, the technical trend has improved from Mildly Bullish on June 29, 2021, and has generated 14.92 per cent returns since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, and OBV. However, the company has a low ability to service debt as the company has a high Debt to EBITDA ratio of 3.73.
Recently, the company informed that the rating agency ICRA Ratings had reaffirmed the company's long-term rating and short-term rating at '[ICRA] A' and '[ICRA] A2+', respectively.
The revision in the long-term rating outlook factors in the steady improvement in Medium and Heavy Commercial Vehicle (M&HCV} demand in both the domestic as well as the export markets and Ramkrishna Forgings Limited's (RKFL) adequate capacity and product reach to cater to this rising demand.
ICRA expects RKFL to register a healthy improvement in sales and operating profits in FY2022 and beyond, which would augment its operating cash flows.
"As the company is at the end of its CAPEX cycle, it would be able to sweat its additional capacity at a time of market expansion and deleverage its balance sheet going forward. ICRA notes a sharp improvement in RKFL's financial performance in Q4 FY2021 with a 133% YoY growth and a 30% sequential growth in revenues," the rating agency added.
Share of Ramkrishna Forgings Limited (RKFL) rose 2 per cent to hit a fresh 52-week high of Rs 750.00 on BSE after the company announced it has received a multi-year order from a European OEM worth Rs 132 crore.
Ramkrishna Forgings Limited has received PPAP clearance (Parts Production Approval Process) and confirmation to launch an order worth Rs 132 crore from a European OEM. The order is to be implemented for 3 years distributed equally.
The share ended 0.99 per cent higher at Rs 743.20 against the previous close of Rs 735.95. It has delivered 359 per cent return in the last 12 months and risen 55 per cent since the beginning of this year.
RKFL's share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, 200 day moving averages. Market cap of the firm rose to Rs 2,376.60 crore on BSE.
"We continue building strong order book in international markets given our business operations that are meticulously aligned to stringent global benchmarks. Generally, the margin in exports business tend to be better and now since domestic market have also started opening up after 2nd wave of Covid, the company hopes to achieve better sales and profitability both from domestic as well as international markets in upcoming quarters," Mr. Naresh Jalan, Managing Director, Ramkrishna Forgings Limited
"This order improves revenue visibility and profitability over the next 3 years. Our ability to develop customised products coupled with technology spending and efficient utilization of our facilities is leading us to develop our business and we continue to expand domestically and internationally at this pace in the coming future," he added.
According to MarketsMojo, the technical trend has improved from Mildly Bullish on June 29, 2021, and has generated 14.92 per cent returns since then. Multiple factors for the stock are Bullish like MACD, Bollinger Band, KST, and OBV. However, the company has a low ability to service debt as the company has a high Debt to EBITDA ratio of 3.73.
Recently, the company informed that the rating agency ICRA Ratings had reaffirmed the company's long-term rating and short-term rating at '[ICRA] A' and '[ICRA] A2+', respectively.
The revision in the long-term rating outlook factors in the steady improvement in Medium and Heavy Commercial Vehicle (M&HCV} demand in both the domestic as well as the export markets and Ramkrishna Forgings Limited's (RKFL) adequate capacity and product reach to cater to this rising demand.
ICRA expects RKFL to register a healthy improvement in sales and operating profits in FY2022 and beyond, which would augment its operating cash flows.
"As the company is at the end of its CAPEX cycle, it would be able to sweat its additional capacity at a time of market expansion and deleverage its balance sheet going forward. ICRA notes a sharp improvement in RKFL's financial performance in Q4 FY2021 with a 133% YoY growth and a 30% sequential growth in revenues," the rating agency added.