Midcap Auto Ancillaries Stock Hits 52-Week High On Securing Order Valued At 16 Million Euros

Ramkrishna Forgings' shares on Thursday gains over 4% on securing 16 Million Euros (approx. 145 Crore) business contract for over 4 years. Following the jump, the stock touched its new 52-week high at Rs 617.90 per share on BSE. The company's position in the European OEM market is probably going to be strengthened by this new order.

Ramkrishna Forgings is an Auto Ancillaries sector company having a market cap of Rs 9,830.81 Crore.

At the time of writing, 12:53 PM, the shares price of Ramkrishna Forgings is trading at Rs 614.85 per share, up 3.37% from its previous close. The stock jumped 7.79% in the last 1 week, while in 1 year, it has given 227.05% multibagger return.

"Ramkrishna Forgings Limited ("the Company"), one of the leading suppliers of rolled, forged, and machined products is pleased to announce the recent award of a significant business contract valued at 16 Million Euros (approx. Rs. 1,450 Million). The contract, secured under a long-term agreement, spans a duration of 4 (four) years, and solidifies the Company's position in the European Original Equipment Manufacturer (OEM) sector," the company said in a press release.

It added, "Having successfully served the same OEM for the past 5 (five) years by supplying Front Axle Components, the Company has now been entrusted with the production and delivery of Differential components. This expansion into Rear Axle components stands as a testament to the Company's quality and reliability in the eyes of the OEM, paving the way for further collaboration and growth in their partnership, also enhancing the Company's presence in the European market."

Moreover, "The new business marks a key achievement for the Company as it leverages its proven track record and expertise to venture into a new realm of automotive components. With this development, the Company is poised to strengthen its foothold in Europe by expanding its product range and contributing to the efficiency and performance of vehicles in the region."

Commenting on the acquisition Mr. Lalit Kumar Khetan, Whole Time Director & CFO, Ramkrishna Forgings Limited said, "We are delighted to have been awarded this significant contract, which not only attests to the quality of our products but also demonstrates the trust that OEMs place in our capabilities. This accomplishment underscores our dedication to innovation, precision, and customer satisfaction. We look forward to further fortifying our presence in the European market."

About the company

Ramkrishna Forgings was incorporated in 1981 with the objective to manufacture forged products. The Annualized installed capacity after commissioning of RA Shaft line, 5"upsetter, Hollow Spindle Line, a new 7000 Ton Press Line, a 2000 Ton warm/hot Forming Press, and a fabrication facility is 210,900 MT. Headquartered at Kolkata, the company has state-of-the-art manufacturing facilities at aamshedpur along with offices at Detroit in USA, Toluca and Monterrey in Mexico, Istanbul in Turkey having warehousing facilities at Hagerstown, Louisville, Detroit in USA, Toluca, Monterrey in Mexico and Westerloo in Belgium. O