Rs 30 to Rs 540: This stock turned into a multibagger in three years, hit record high in previous session

Shares of multibagger Ramkrishna Forgings Ltd have rallied over 1,710% in the last three years. The stock of the forged components maker, which closed at Rs 29.91 on July 24, 2020 ended at Rs 540.70 on July 25, 2023 on BSE. An amount of Rs 1 lakh invested in the Ramkrishna Forgings stock three years ago would have turned into Rs 18.07 lakh today. In comparison, Sensex has risen 74.03 per cent during the period.

Ramkrishna Forgings stock opened higher at Rs 537.95 in the previous session on BSE. It rose 1.53% intraday to Rs 549, a record high on BSE in the previous sesion. The stock hit a 52-week low of Rs 175 on July 26, 2022.

Total 0.88 lakh shares of the firm changed hands amounting to a turnover of Rs 4.77 crore in Tuesday’s session. Market cap of the firm climbed to Rs 8645.23 crore on BSE.

Seven promoters held 46.27 per cent stake in the firm and 66,234 public shareholders owned 53.60 per cent for the quarter ended June 2023. Of these, 63,880 resident individuals held 11.38% stake or 1.82 crore shares with capital up to Rs 2 lakh. Only 21 resident individuals with 10.86% stake or 1.73 crore shares held capital above Rs 2 lakh for the quarter ended June 2023.

In terms of technicals, the relative strength index (RSI) of Ramkrishna Forgings stands at 80.5, signaling it's trading in the overbought zone. Ramkrishna Forgings stock has a one-year beta of 1, indicating average volatility during the period. Ramkrishna Forgings shares are trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

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Here’s a look at what analysts said on the outlook of the stock.

Osho Krishan, Sr. Analyst - Technical & Derivative Research, Angel One said," Ramkrishna Forgings is in a secular uptrend and is in the cycle of higher high – higher low on all time frames. On the technical front, the support is placed around Rs 480 odd zone, followed by the strong support of Rs 440. While any dip toward the mentioned support is likely to augur well for the bulls, the stock looks poised to continue its upward trend in the comparable period."

Abhijeet from Tips2trades said, "Ramakrishna Forgings looks bullish but overbought on the Daily charts with next resistance at Rs 513. A daily close below the support of Rs 478 could lead to Rs 423 in the near term."

In the June 2023 quarter, the firm reported a 63 per cent rise in its net profit at Rs 76.97 crore on account of higher income. The firm had reported a Rs 47.26 crore net profit in the April-June period of the preceding 2022-23 fiscal.

Total income rose 28% to Rs 835.95 crore in the June quarter from Rs 650.75 crore in the year-ago quarter.

On July 24, Ramkrishna said it has acquired Multitech Auto Private Ltd and its wholly owned subsidiary Mal Metalliks Private Limited for Rs 205 crore.

Multitech Auto and Mal Metalliks makes various parts for automobiles like assembly top cover, shift cylinder, assembly gear, differential case, differential cover, various types of hubs among others.

"This acquisition marks a significant step forward in the company's growth strategy, aimed at expanding its product line and fortifying its presence in the passenger vehicles, light commercial vehicles, and heavy commercial vehicles segments," it said.

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.