This multibagger smallcap stock climbs 6% on US EV market foray

Shares of Ramkrishna Forgings in trade on Thursday climbed as much as 6 per cent to day's high price of Rs 763.8 per share on the BSE after the company made its debut in the US electric vehicle market.

The company in its exchange filing today said that it has secured an approval for supplying  Power Train Components to USA's  largest Electric Passenger Vehicle Producer. 

Ramkrishna Forgings Limited (“Company”), 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. 

This landmark approval signifies the Company's position into 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 Company’s expertise and commitment to delivering top-notch products. Mr. Milesh Gandhi, Executive Director, Ramkrishna Forgings Limited said, “We are thrilled to have received an approval from USA's Largest Electric Passenger Vehicle producer to supply power train components.

This collaboration speaks volumes about our ongoing commitment to innovate and our capabilities to meet the demands of the EV industry. Drawing from our four-decade-long expertise and know-how in developing and producing forged components, we are proud to offer products that enable our customers to save valuable development time and expedite the market entry.

Through our continuous innovations we remain committed to creating value for our customers and contributing to the advancement of sustainable mobility globally." 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. 

The stock over the last one year has gained 144 per cent, while its 5 year return is at 595 per cent.

Some of the prominent foreign institutional investors holding the stock as of the December quarter of 2023 are Small Cap World Fund, Nomura India Investment Fund Mother Fund, Pacific Horizon Investment Trust, Massachusetts Institute of Technology among others, Total FII shareholding in the firm as of the December quarter stood at 23.59 per cent, higher as against the previous quarter's holding at 18.13 per cent.

Ramakrishna Forgings is a smallcap company commanding a m-cap of Rs 13,499 crore.