The small cap company rallied 9 per cent; FIIs hold 14 per cent stake of the company. Do you own it?
Company has delivered good profit growth of 79.4 per cent CAGR over last 5 years.
On Wednesday, Nifty opened with a gap-up of 100 points amid global rally and it went on to make the day’s high of 17,211. However, thereafter, it witnessed profit booking and filled the gap. While one stock from the outperforming sector, Casting, Forgings and fasteners – RKFORGE surged around 9 per cent with massive volumes.
Ramkrishna Forgings Ltd (NSE Scrip code: RKFORGE) is primarily engaged in manufacturing and sales of forged components of automobiles, railway wagons & coaches and engineering parts. Company has delivered good profit growth of 79.4 per cent CAGR over last 5 years. Foreign institutional investors (FIIs) hold 14 per cent where Domestic Institutional Investors (DIIs) hold 4.7 per cent stake of the company.
Technically, the stock has registered a breakout from 2 months consolidation range of Rs. 287 on higher side and Rs. 252 on lower side. Stock surged 9 per cent with volumes around 3 million shares in the first half of the session only and is currently trading at Rs. 285 level. Closing around day’s high will confirm the breakout.
On daily charts, the 14-day period RSI is above 60 level and it has also crossed its previous multiple swing highs. Positive crossover of 5-13-26 DMA indicates strong momentum which may result follow up buying in the upcoming sessions.
Momentum traders and investors should add this stock to their watchlist.