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Business News/ Markets / Stock Markets/  Ramkrishna Forgings share price hits 52-week high on 12,226.5-crore order win from Ministry of Railways
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Ramkrishna Forgings share price hits 52-week high on ₹12,226.5-crore order win from Ministry of Railways

Ramkrishna Forgings' share price jumps over 7% to a new 52-week high after winning a ₹12,226.5 crore contract with Titagarh Rail Systems Ltd consortium to deliver 1.54 million forged wheels under the Atmanirbhar Bharat Initiative by the Ministry of Railways.

Ramkrishna Forgings shares opened at ₹433.10 apiece on BSE and recorded a intraday high of ₹440 and low of ₹432.20.Premium
Ramkrishna Forgings shares opened at 433.10 apiece on BSE and recorded a intraday high of 440 and low of 432.20.

Ramkrishna Forgings share price touched new 52-week high and jumped over 7% after the company and the Titagarh Rail Systems Ltd consortium won a contract for 12,226.5 crores to deliver 1.54 million forged wheels under the Atmanirbhar Bharat Initiative by the Ministry of Railways. Ramkrishna Forgings shares opened at 433.10 apiece on BSE and recorded a intraday high of 440 and low of 432.20.

The consortium will be required to provide 40,000 forged wheels during the first year of the contract, 60,000 wheels the next year, and 80,000 wheels each year after that, the company stated in an exchange filing.

The wheels produced in line with this agreement will meet the needs of various platforms, including the LHB coaches, WAG9 locomotives, Vande Bharat Express Trains, etc.

Additionally, according to the company's exchange filing, the consortium will build a state-of-the-art manufacturing plant to produce these forged wheels, with a target annual production of 2,00000 wheels once it is fully operational. This facility will not only meet the needs of the domestic railway industry, but it will also assist the consortium in meeting latent demand from the private sector and international markets.

A capital expenditure of between 1,000 and 1,200 Crores will be necessary for the project's effective completion. Equal equity contributions from both firms will be made in order to achieve this financial requirement, said the company in an exchange filing.

“This project stands as a testament to our unwavering dedication to promoting indigenous manufacturing and fostering self-reliance. By harnessing our collective capabilities and wealth of experience, we are steadfast in our commitment to deliver unparalleled products that will significantly enhance the performance and safety of the Indian rail network.

With a resolute vision to contribute to the growth of the Indian railways and cultivate self-sufficiency, our consortium eagerly anticipates establishing a long-term partnership with the Ministry of Railways," said Naresh Jalan, Managing Director of the company.

On the technical front, as per trendlyne data, the stock price rose 151.9% and outperformed its sector by 83% in the past year.

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, this stock is in a strong uptrend. Today the analyst has seen a huge gap up opening backed by volumes, overall trend remains positive however indicators are highly overbought hence fresh longs can be avoided, if in case of any dip towards 400 can be taken to re-enter, immediate resistance is at 445.

On the other side, Titagarh Wagons shares were trading at 426.95 apiece on BSE, up over 2.5%. The company and Bharat Heavy Electricals Ltd (BHEL) consortium too bagged order worth Rs 24,000 crore to manufacture and supply 80 Vande Bharat sleeper trains for Indian Railways.

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Published: 16 Jun 2023, 09:45 AM IST
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