Ramkrishna Forgings shares in focus on Wednesday as firm wins Rs 107 crore order

Shares of Ramkrishna Forgings Ltd will be tracked on Wednesday after the firm said it won a $13.65 million (about Rs 107 crore) order from clients in the North American region. The order is for supply of rear axle and transmission components, the company said.  

On Monday, shares of Ramkrishna Forgings ended flat at Rs 583.60 on BSE. The stock of the forged components maker opened higher at Rs 586.65 in the previous session. It’s trading near the record high of Rs 599.40, reached on August 9, 2023. The stock hit a 52-week low of Rs 175.50 on September 26, 2022. Total 0.46 lakh shares of the firm changed hands amounting to a turnover of Rs 2.72 crore in Monday’s session. Market cap of the firm rose to Rs 9331.15 crore on BSE. The stock closed 0.21% lower at Rs 583.60 in the same session.      

Seven promoters held 46.27 per cent stake in the firm and 66,234 public shareholders owned 53.60 per cent for the quarter ended June 2023. Of these, 63,880 resident individuals held 11.38% stake or 1.82 crore shares with capital up to Rs 2 lakh. Only 21 resident individuals with 10.86% stake or 1.73 crore shares held capital above Rs 2 lakh for the quarter ended June 2023.       

In terms of technicals, the relative strength index (RSI) of Ramkrishna Forgings stands at 70.1, signaling it's trading in the overbought zone. Ramkrishna Forgings stock has a one-year beta of 1.1, indicating high volatility during the period. Ramkrishna Forgings shares are trading higher than the 10 day, 20 day, 50 day, 100 day and 200 day moving averages.        

"Ramkrishna Forgings strengthens its North American presence through...securing a substantial business contract valued at USD 13.65 million for supplying rear axle and transmission components," it said. 

The awarded contract pertains to the production and supply of rear axle and transmission components for Class 5, 6, and 7 vehicles. With this accomplishment, the company said it is strategically expanding its footprint in North America and strengthening its position within the light vehicle sector. 

In the June 2023 quarter, the firm reported a 63 per cent rise in its net profit at Rs 76.97 crore on account of higher income. The firm had reported a Rs 47.26 crore net profit in the April-June period of the preceding 2022-23 fiscal. Total income rose 28% to Rs 835.95 crore in the June quarter from Rs 650.75 crore in the year-ago quarter.   

Kolkata-based Ramkrishna Forgings is a manufacturer and supplier of closed-die forgings of carbon and alloy steel, micro-alloy steel and stainless steel forgings. The company operates through two segments: Forging components and others. The company's products include rolled products, forged products and machined products. The company supplies its products to various sectors, such as automotive, railways, farm equipment, bearings, oil and gas, power and construction, earthmoving, and mining, both in India and overseas markets.    

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