After Ramkrishna Forgings disappointed the market by its quarter result, a ray of hope has descended on the company. Ramkrishna Forgings may see its revenues rise by 10-15 percent in the current fiscal due to the new press it has recently commissioned. The announcement regarding the new press was made by its Chief Financial Officer, Rajesh Mundra. Although Ramkrishna forgings share price have been dwindling around in red with the massive drop, the announcement might bring in some liveliness in the scrip.
Margins are also expected to rise steadily as the company plans to produce complex forged components. The company's revenues dropped in the first quarter of the current financial year on both the quarter-on-quarter and year-on-year basis. This was due to the failing in the export markets for the entire forging industry. Exports account for 35 percent of Ramkrishna Forgings's business. Due to this weakness, the company has shifted its focus towards its domestic business.
The hopes are high, and the company is counting to pull Ramkrishna Forgings share price from the trouble it is in.
Exports are expected to be about 30-35 percent of this financial year, while last year it stood at about 44 percent. Exports will be little less this financial year, and the company’s cycle, and its focus will be more towards domestic in this financial year.
Currently, Ramkrishna Forgings share price was trading at Rs. 387 with the drop of around 8%. The scrip opened at Rs. 401 and touched the intraday high of Rs. 401.05 before it came crashing down to Rs. 375. Dynamic Levels have identified Ramakrishna Forgings among the multibagger stocks for the month. For more details, visit Ramakrishna Forgings share price history page of Dynamic Levels website.
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