FIIs bought 5.46 per cent stake: This railway wagons company secures approval to supply power train components to USA’s largest electric passenger vehicle producer!
The stock gave multibagger returns of 151 per cent in just 1 year and a whopping 675 per cent in 3 years.
Ramkrishna Forgings Limited (RKFL), one of the leading suppliers of rolled, forged, and machined products, is pleased to announce a significant milestone in its journey towards pioneering electric mobility solutions. The USA's Largest Electric Passenger Vehicle manufacturer approves power train components, marking the beginning of a strategic partnership that opens up a realm of exciting opportunities.
This landmark approval signifies the Company's position in the electric passenger vehicle segment with a strong emphasis on powertrain components. The approval follows the showcasing of a comprehensive portfolio of cutting-edge solutions, demonstrating the company’s expertise and commitment to delivering top-notch products. This approval not only signifies the Company's debut in the US EV market but also unlocks a multitude of thrilling new prospects. With a focus on sustainability and efficiency, Ramkrishna Forgings Limited is poised to play a pivotal role in shaping the future of electric mobility.
Earlier, the company secured a major order worth Rs 270 crore for the prestigious Vande Bharat Train Set project. This win, for the Bharat Heavy Electricals Ltd (BHEL) - Titagarh Rail Systems Ltd (TRSL) consortium, signifies a significant milestone in RKFL's commitment to excellence in rail infrastructure development. The project entails developing and validating the bogie frame, a critical undercarriage component, for the sleeper version of the trainset. RKFL's proven expertise and dedication to innovation make them the perfect partner for this project. The order covers 32 train sets, each with 16 coaches, requiring RKFL to manufacture a total of 1,024 bogie frames, thus demonstrating their ability to handle large-scale and complex manufacturing demands.
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About Ramkrishna Forgings Limited (RKFL)
Founded in 1981, Ramkrishna Forgings has grown from a forgings manufacturer to a global supplier of custom metal components. Their state-of-the-art facilities in India, exceeding 1,87,100 MT in annual capacity, and strategically located offices around the world cater to OEMs and Tier 1 companies across industries. With certifications for quality and environment, they produce a wide range of forged parts and deliver them according to specific requirements, making them a critical supplier for railways, automotive, farm equipment, and more, with clients like Tata Motors and Volvo solidifying their position as a leader in metal forming.
The company has a market cap of Rs 12,800 crore and has delivered good profit growth of 21.1 per cent CAGR over the last 5 years. Additionally, the company’s median sales growth has been 20.4 per cent in the last 10 years and working capital requirements have reduced from 142 days to 102 days. The FIIs have increased their stake to 23.59 per cent in December 2023 compared to 18.13 per cent in September 2023.
Today, shares of Ramkrishna Forgings Ltd gained 5.86 per cent to Rs 774 per share from its previous closing of Rs 731.15 with an intraday high of Rs 790.40 and an intraday low of Rs 717.75. The stock’s 52-week high is Rs 814.95 and its 52-week low is Rs 292. The shares of the company saw a spurt in volume by more than 2.39 times on BSE. The stock gave multibagger returns of 151 per cent in just 1 year and a whopping 675 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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