Ramkrishna Forgings hits 52-week high after firm renews contract with North America-based customer
Ramkrishna Forgings Stock: After hitting a one-year high, the stock, however, retreated and was trading 0.87 per cent higher at Rs 308.10 at 11:48 am. In comparison, the benchmark S&P BSE Sensex was trading 0.32 per cent or 190 points higher at 60,022.87 levels.
Ramkrishna Forgings Stock: Shares of Ramkrishna Forgings hit a 52-week high of Rs 318 apiece on the BSE in the early trade on April 10, after the company, via its exchange filing, informed that it has successfully renewed the long-term contract with an additional new product range with Overseas Tier 1 customer based in North America. The contract, it said, will be valid till December 31, 2027.
This contract is in the normal course of the business.
After hitting a one-year high, the stock, however, retreated and was trading 0.87 per cent higher at Rs 308.10 at 11:48 am. In comparison, the benchmark S&P BSE Sensex was trading 0.32 per cent or 190 points higher at 60,022.87 levels.
That apart, the consortium of Ramkrishna Forgings and Titagarh Wagons received the Letter of Award from the Ministry of Railways last week for manufacturing and supply of forged wheels under the long-term agreement under Aatma Nirbhar Bharat.
As per the agreement, the companies will manufacture and supply 15,40,000 forged wheels of different rolling stocks to the Ministry of Railways over a period of twenty years.
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Ramkrishna Forgings is a Castings & Forgings company, founded on November 12, 1981, as per the company's website. The company claims it is a supplier to various sectors such as Automotive, Railways, Farm Equipment, Bearings, Oil & Gas, Power and Construction, and Earth Moving & Mining, both in India & overseas markets.
In a report dated January 21, 2023, analysts at Anand Rathi, had said, - "For RK Forgings, export opportunities continue to increase as the company acquires new customers, enters new regions and further grows its order book. It plans to add 56,000 tons in the near term, which would primarily cater to North American and European markets for EVs. Domestic demand remains robust and is expected to continue. Accordingly, we maintain a Buy at a revised TP of Rs 385 (13x FY25e)."
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