Penny stock under ₹5: Steel stock jumps up to 14% after product launch; profit margin to benefit 20%

Penny stock under ₹5: Ganga Forging share price jumped up to 14% to ₹3.87 apiece in Wednesday's trading session after the company announced its foray into the Elastic Rail Clip segment.

Ganga Forging's new product launch signals the company's focus on tapping new growth avenues and driving innovation to boost its topline, thus driving investor interest. According to the company, the entry into the Elastic Rail Clip segment will boost annual topline by ₹48 crore.

Ganga Forging's New Product Foray: Key Details

Ganga Forging, in an exchange filing, said that the Elastic Rail Clip is a critical railway track fastening component used by Indian Railways.

Elastic Rail Clips play a vital role in securing rails with sleepers and ensuring track stability and operational safety. The product is extensively used in railway track construction, maintenance and replacement projects across the Indian Railways network.

It further added that the company is currently in the process of obtaining approval from the Research Designs and Standards Organisation (RDSO) under Track Design Engineering, Ministry of Railways, for the manufacture and supply of Elastic Rail Clips.

“Manufacturing of Elastic Rail Clips is restricted to a limited number of approved manufacturers located primarily in Gujarat, Maharashtra and Rajasthan. This controlled supplier base creates a favourable demand environment and long-term business visibility for approved vendors,” the company said.

After receiving the approval, Ganga Forging will be eligible to participate in procurement by Indian Railways and various railway zones.

The company further added that it has established an installed manufacturing capacity of approximately 3,25,000 Elastic Rail Clips per month.

At an average selling price of approximately ₹120 per unit, the product has the potential to generate a monthly revenue of around ₹3.9 crore. On an annualised basis, the Elastic Rail Clip segment has the potential to add approximately ₹48 crore to the company’s turnover, the company said.

The company expects a net profit margin of around 20% from this product, supported by specialised forging capabilities, operational efficiencies and strong demand fundamentals.

Ganga Forging Limited is a steel forging manufacturer, serving industries such as railways, construction, mechanical engineering, oil refineries, mining and power transmission.

Ganga Forging share price trend

Ganga Forging share price has risen 10% on both a year-to-date (YTD) and one-year basis. The penny stock under ₹5 reached a 52-week high of ₹7.80 on January 6, 2025 and touched a 52-week low of ₹2.70 on December 4, 2025.

Investors are advised to exercise caution when dealing in penny stocks, as they are prone to sharp fluctuations and speculative trading behaviour.

Ganga Forging shares are listed only on the National Stock Exchange (NSE).

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.