Multibagger stock gained 791% in three years; supplier for Tata Motors might hit fresh high

Shares of Ramkrishna Forgings Ltd have rallied 791% in the last three years. The midcap stock, which closed at Rs 34.98 on April 9, 2020 rose to a high of Rs 312 on the BSE today. An amount of Rs 1 lakh invested in the shares of Ramkrishna Forgings three years ago would have turned into Rs 8.91 lakh today. In comparison, Sensex has risen 96.15 per cent during the period.

In the current session, Ramkrishna Forgings stock was trading in the green. The stock rose up to Rs 312 today against the previous close of Rs 307.70. Earlier, the stock opened flat at Rs 307.05 on BSE.  It hit a record high of Rs 318 on April 10, 2023 and a 52 week low of Rs 145.50 on June 21, 2022.

In terms of technicals, the relative strength index (RSI) of the stock stands at 66.6, signaling it's trading neither in the overbought or oversold zone. Ramkrishna Forgings shares have a beta of 1.3, indicating high volatility in a year. Ramkrishna Forgings shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has climbed 66% in a year and gained 18.62% this year. Total 0.29 lakh shares of the firm changed hands amounting to a turnover of Rs 90.80 lakh on BSE. Market cap of the firm rose to Rs 4,965 crore on BSE.

Seven promoters held 46.27 per cent stake in the firm and 60,129 public shareholders owned 53.58 per cent or 8.56 crore shares for the quarter ended March 2022. Of these, 58004 public shareholders held 1.73 crore shares or 10.87% stake with capital up to Rs 2 lakh. Only 27 shareholders with 11.24% stake held capital above Rs 2 lakh for the quarter ended March 2022.

In the December quarter of last fiscal, net profit of Ramkrishna Forgings rose 34.60% to Rs 61.04 crore against Rs 45.35 crore during the quarter ended December 2021. Sales climbed 29.30% to Rs 774.48 crore in Q3 against Rs 601.32 crore during the quarter ended December 2021.

According to annual earnings for the fiscal ended March 2022, the firm reported a 858.06 per cent rise in profit to Rs 198.03 crore against a loss of Rs 20.67 crore in the year ago period.  Profit for March 2020 fiscal stood at Rs 9.70 crore.

Sales zoomed 80.01% to Rs 2320 crore in the last fiscal against Rs 1288.93 crore for the fiscal ended March 2021. Sales for fiscal ended March 2020 stood at Rs 1216.47 crore.

About the Company   

Ramkrishna Forgings is engaged in the manufacturing and sale of forged components. The company operates through two segments: forging components and others. The company's products include rolled products, forged products and machined products. The company is a preferred supplier to original equipment manufacturers (OEMs) such as Tata Motors, Ashok Leyland, VE Commercial and Daimler in India and to Volvo, Mack Trucks, Iveco, Ford in the overseas markets. The company is also a critical safety item supplier for screw coupling, bolster suspension, side frame keys and draw gear assembly for railway coaches and wagons.

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