Shares of Ramkrishna Forgings Ltd nearly 4% in early trade after the rolled, forged, and machined products maker said its board has cleared the commencement of manufacturing and supplies from the company’s Mexico location. It also approved an investment of up to Rs 90 crore to establish a facility to manufacture components in the PV/LV segment.
Ramkrishna Forgings shares rose 3.79% to Rs 766.35 on BSE. The stock of the forged components maker opened higher at Rs 750.30 today. It has gained 186% from in a year. The forgings stock slipped to a 52 week low of Rs 244.75 on February 27, 2023 and a 52 week high of Rs 814.95 on December 1, 2023.
Total 3,479 shares of the firm changed hands amounting to a turnover of Rs 26.29 lakh in Friday’s session. Market cap of the firm rose to Rs 13,289 crore on BSE. On NSE, 96,397 shares of the firm changed hands amounting to a turnover of Rs 7.31 crore in early trade.
The operation in Mexico is backed by a 10 year US$3.5 million per annum “Take or Pay” agreement for machining components with a North American customer, said the firm in a communication to bourses.
The company is not required to make any investments in plant & machinery for manufacturing the products under the above agreement, it said.
The new facility will have an installed production capacity of 11,000 metric tonnes per annum. The investment is supported by a long-term minimum US$10 million per annum “Take or Pay” agreement with a North American customer, said Ramkrishna Forgings.
Ramkrishna Forgings stock has a one-year beta of 0.2, indicating very low volatility during the period.
In terms of technicals, the relative strength index (RSI) of Ramkrishna Forgings stands at 48.6, signaling it's trading neither in the overbought nor in the oversold zone. Ramkrishna Forgings shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day, 200 day moving averages.
Kolkata-based Ramkrishna Forgings is a manufacturer and supplier of closed-die forgings of carbon and alloy steel, micro-alloy steel and stainless steel forgings. The company operates through two segments: Forging components and others. The company's products include rolled products, forged products and machined products. The company supplies its products to various sectors, such as automotive, railways, farm equipment, bearings, oil and gas, power and construction, earthmoving, and mining, both in India and overseas markets.