Ramkrishna Forging’s Stock Rallied 3.92% With Positive Market News

A consortium between Ramkrishna Forgings (RKFL) and Titagarh Rail Systems (TRSL), has been awarded the contract to manufacture and supply 15,40,000 forged wheels over 20 years, under the Atmanirbhar Bharat Initiative by the Ministry of Railways, Government of India. The contract will see the consortium delivering 40,000 forged wheels during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter, with the total contract valued at Rs 12,226.5 crore. 

The wheels manufactured under this agreement will cater to the requirements of multiple platforms, such as the LHB coaches, WAG9 Locomotives, Vande Bharat Express Trains, etc. The RKFL-TRSL consortium will be establishing a state-of-the-art manufacturing facility to manufacture these forged wheels, with total annual production targeted at 2,00,000 wheels when fully operational. Not only will this facility address the demands of the domestic railway sector, but also help the consortium address the latent demand from the private sector as well as export markets. 

The successful execution of this project will require a capital expenditure ranging from Rs 1,000 to Rs 1,200 crore. To meet this financial requirement, both companies will contribute equity on an equal basis, ensuring a robust funding structure to support the project’s capital expenditure needs. 

Ramkrishna Forgings is engaged in the manufacture of Screw Couplings, Draw Gear Assembly, Snubber Assembly, Hanger, Block Hanger Side Frame Key and various other forgings items for Railway Coaches and Wagon. 

Today, Ramkrishna Forging’s stock opened at Rs 433.10, with a high and low of Rs 440 and Rs 416.60. The stock closed trading at Rs 424.50, up by 3.92%. The stock has a 52-week high of Rs 440 and a 52-week low of Rs 145.50. The company has a ROCE of 17.6% and an ROE of 14.9%, with a market capitalisation of Rs 5,084 crore.