Ramkrishna Forgings shares buck market trend, surge 4%; here's why

Auto Components & Equipment maker Ramkrishna Forgings' shares were defying the broader market trends and trading higher on Tuesday, March 4, 2024. The company's share price advanced 4.42 per cent to the day's  high of Rs 667.50 per share on the National Stock Exchange (NSE) during intra-day trading on Tuesday. 

 

The upward movement in Ramkrishna Forgings' share price came on the back of the news that the company has provided a Corporate Guarantee, valid from March 3, 2025, to September 30, 2029, up to an amount of USD 6.65 million to Operadora Stiva S.A. de C.V., Mexico, for leasing rented space by Ramkrishna Forgings Mexico S.A. de C.V. (formerly Resortes Libertad S.A. de C.V.), a wholly-owned subsidiary company.

 

The company, in its exchange filing, further said that the earlier Corporate Guarantee, provided on September 11, 2024, by the company to Operadora Stiva S.A. de C.V., Mexico, will stand revoked.

 

Ramkrishna Forgings is primarily engaged in the manufacturing and sale of forged components for automobiles, railway wagons & coaches, and engineering parts. The company currently has manufacturing facilities at Gamaria, Adityapur Industrial Area, Baliguma, Dugni, Saraikela, and Jamshedpur in Jharkhand, as well as at Liluah in West Bengal. The company's products include forgings for railway coaches, wagons, and locomotives; forgings for automobiles, mining, and general engineering; forgings for valve bodies; transmission items; track links, master links, and trade rollers; drop forgings from 1 kilogram to 125 kilograms; and forged and fabricated spares for railway wagons, coaches, diesel, and steam locomotives, such as hanger screw coupling, side frame key, shackle, stone guide, lower spring seats, draw gear assembly, snubber assembly, block hangers, draw hook, and drawbar.

 

Ramkrishna Forgings enjoys a market capitalisation of Rs 12,034.91 crore on the NSE as of March 4, 2025. The company is also a constituent of the Nifty 500 index on the NSE.

 

The company’s share price has dropped nearly 33 per cent in the last six months and around 12 per cent in the last one year.

 

Ramkrishna Forgings' shares continued to trade higher on the bourses. At around 12:57 PM on Tuesday, the company's shares were trading at Rs 668.85 apiece, up 4.64 per cent from the previous close of Rs 639.20 on the NSE.

 

At the same time, the benchmark equity indices were in the red. The BSE Sensex was down by 181 points, or 0.25 percent, at 72,904 levels, while the Nifty 50 traded 63 points, or 0.28 per cent lower, at 22,057 levels.