52-week high alert: This railway forging company and Titagarh Rail Systems Limited wins contract worth Rs 12,226.50 crore from Ministry of Railways!
The stock gave multibagger returns of 170 per cent in just 1 year whereas BSE small-Cap Index is up by 37.87 per cent.
Ramkrishna Forgings Limited, one of the leading suppliers of rolled, forged, and machined products, is pleased to announce that a consortium between Ramkrishna Forgings Limited (RKFL) and Titagarh Rail Systems Limited (TRSL), has been awarded the contract to manufacture and supply 15,40,000 forged wheels over a span of 20 years, under the Atmanirbhar Bharat Initiative by Ministry of Railways, Government of India.
The contract will see the consortium delivering 40,000 forged wheels during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter, with the total contract valued at Rs 12,226.50 crore.
The wheels manufactured under this agreement will cater to the requirements of multiple platforms, such as the LHB coaches, WAG9 Locomotives, Vande Bharat Express Trains, etc. The RKFL-TRSL consortium will be establishing a state-of-the-art manufacturing facility to manufacture these forged wheels, with total annual production targeted at 2,00,000 wheels when fully operational.
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On Friday, shares of Ramkrishna Forgings zoomed 7.71 per cent to make a new 52-week high of Rs 440 per share from its previous closing of Rs 408.50. The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 145.50 per share.
Talking about the financials, Ramkrishna Forgings Limited has a market cap of Rs 6,787.13 crore. The company reported positive numbers in its Quarterly Results (Q4FY23) and annual results (FY23). The net sales increased by 37.68 per cent and the net profit increased by 25.25 per cent in FY23 over FY22. The EPS for FY23 stood at Rs 15.48.
The stock gave multibagger returns of 170 per cent in just 1 year whereas BSE small-Cap Index is up by 37.87 per cent. Investors should keep an eye on this railway forging stock under the radar.