Ramkrishna Forgings jumps over 6 per cent: Will the momentum continue?
It has also clocked a volume of nearly 2 lakhs shares on NSE, which is the highest single-day volume since January 18, 2022.
The Indian benchmark indices were seen trading in red with Nifty declining about 0.43 per cent and Sensex dipping around 0.35 per cent. Despite the fact that the headline indices were seen trading in red, the broader markets were seen buzzing with Nifty Midcap 100 and Smallcap 100 advancing 0.50 per cent & 0.91 per cent, respectively. With this outperformance from the broader markets, the advance-decline ratio is tilted in the favour of advances.
Many stocks from the broader market indices witnessed buying interest except for one particular stock and that is Ramkrishna Forgings Ltd (RKFORGE). We are just two hours into Tuesday’s trading session and the stock of RKFORGE has already jumped more than 6 per cent! Besides, it has also clocked a volume of nearly 2 lakhs shares on NSE, which is the highest single-day volume since January 18, 2022.
So, let’s know the reason behind this stock’s buying interest. A leading axle manufacturer in the USA has encouraged Ramkrishna Forgings Limited, one of the leading suppliers of rolled, forged & machined products for an estimated business of Rs 70 crore over a five-year period. The products will be used in the rear axle applications.
Commenting on the expected order, Milesh Gandhi, Vice President (Marketing), 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.”
On a YTD basis, the stock is down by about 12.77 per cent but on an MTD basis, it has delivered gains of 1.82 per cent.
On the technical front, the stock had formed an inside bar last week, and going forward, sustaining above the level of Rs 855 would be positive for the stock.