Tirupati Forge receives approval for supply of forgings, stock rises 3%

Tirupati Forge has received approval from a number of reputed large companies of India for supply of forgings and machined components and the company expects a strong rise in its topline after the approval. The stock rose about 3 per cent in the early trade.

This would help in contributing an additional growth rate of about 30 per cent to the company’s turnover from this year, the company said in an exchange filing. "The demand for forging and machined components is going to rise further in view of large-scale expansion plans of existing companies and the new projects coming up in defence and infrastructure companies," it said.

NSE-listed Tirupati Forge is a manufacturer of carbon steel forged flanges, forged components, and automotive parts. Earlier, the company informed the exchanges that it had decided to enter into new products in the oil and gas segment especially targeting the US market.

Shares of Tirupathi Forge rose about 3 per cent during the early trade on Friday to Rs 11.25, before paring gains partially. The company was commanding a market capitalization of little more than  Rs 107 crore. The scrip had settled at Rs 10.95 on Thursday.

Shares of Tirupati Forge, which are up 35 per cent from 52-week lows at Rs 8.35 on March 29, 2023, have dropped 55 per cent in the year 2023 so far. The stock is trading flat in a year, while it is down 57 per cent from its 52-week high at Rs 25.60 on December 22, 2022.

Tirupati Forge's business is primarily focused on catering to the needs of the international market, with 90 per cent of its products utilized globally. It has an installed capacity of 18,000 tons per annum. Its components are shipped to continents like Europe, Africa and America.

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