Shares of Ramkrishna Forgings Limited (RMKF), one of the leading suppliers of rolled, forged and machined products, surged 8 per cent to hit an intraday high of Rs 1,233.70 on the Bombay Stock Exchange (BSE) after the company announced a partnership with an American axle manufacturer for light vehicle segment.

The stock ended 6.08 per cent higher at Rs 830.15 against the previous close of Rs 782.60 on the BSE. The market cap of the firm rose to Rs 2,654.65 crore. The shares stand higher than 5 day moving averages but lower than 20 day, 50 day, 100 day and 200 day moving averages.

"A leading axle manufacturer in the USA has encouraged Ramkrishna Forgings Limited, one of the leading suppliers of rolled, forged, and machined products for an estimated business of Rs 70 crore over a 5-year period, wherein the products will be used in the rear axle applications," the company said.

Commenting on the expected order Milesh Gandhi, Vice President (Marketing) at Ramkrishna Forgings Limited, said, “It gives us great pleasure to announce that a major US axle manufacturer has expressed strong support for our LV business."

"This significant recognition of our project in rear axle applications will help us to promote continued export revenue growth. Our ongoing efforts to expand in the global market have assisted us in increasing our export sales and improving our relationships with global customers," he said. 

The order win in future will give the company an estimated business of Rs 70 crore over a period of 5 years. This will help it strengthen its presence in the light commercial vehicle segment and also help in improving its presence in the global market, he added.

According to MarketsMojo, the company has declared positive results for the past five consecutive quarters. Also, the stock is trading at a discount compared to its average historical valuations and has an 'Attractive' valuation.

RMKF is a manufacturer and supplier of closed die forgings of carbon and alloy steel, micro-alloy steel and stainless steel forgings. The company’s supplier list includes automotive, railways, farm equipment, bearings, oil and gas, power and construction, earthmoving and mining sectors, both in India and overseas markets.  

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