Multibagger Alert: This top multibagger from the forgings sector gained 247% in one year!

resr 5paisa Research Team

Last Updated: 4th April 2022 - 01:21 pm

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Ramkrishna Forgings has generated over 20% return in the last month.

In the last year (year-to-date or YTD) as of October 19, 2021, Ramkrishna Forgings Ltd (RKFL) has been a multibagger, increasing shareholders' wealth by almost 3.5 times. This ‘A’ graded small-cap stock has been in the buzz lately due to its strong quarterly results and robust order pipeline.

RKFL is primarily engaged with the automotive sector where it supplies rolled, forged and machine products. The Indian Government’s PLI for the sector of Rs 57,042 crore is expected to boost manufacturing which augurs well for RKFL. The net sales for Q2FY22 jumped sequentially by 38.77% to Rs 579 crore. The net profit too soared to Rs 44 crore, a substantial growth of 78%. The fundamentals have been crucial to make this stock a multibagger.

Ramkrishna Forgings Ltd had announced on October 18 that it had bagged an order from Indian Railways for the manufacturing and supply of loco shells. This order is further strengthening the company’s diversification into the non-auto segment, especially into railways.

With this order, the stock had rallied 3.15% on that day. In the latest quarter, it had received total contracts amounting to Rs 620 crore from varied geographies and segments. The macroeconomic scenario can be favourable for this multibagger stock as there has been a positive outlook on stimulus packages for infrastructure and manufacturing space.

Ramkrishna Forgings Ltd is one of the leading suppliers of rolled, forged and machine products. It primarily serves the automotive sector along with railways, bearing, oil & gas, earthmoving & mining industries.

The stock is trading flat at Rs 1199.65 as of October 19, 2021, on BSE. It has a 52-week high and low of Rs 1259.60 and Rs 320.15 respectively.

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