Shares of Ramkrishna Forgings (RKFL) hit an all-time high of Rs 289.30, surging 9% in intraday trade on Wednesday after it emerged as an L1 bidder for forged wheel manufacturing and supply.

Ramkrishna Forgings and Titagarh Wagons (RKFL-TWL consortium) have emerged as the lowest bidder (L1) for manufacturing and supplying forged wheels to the Ministry of Railways, the Government of India said in an exchange filing.

Over 20 years, the total supply of forged wheels will be approximately 1.54 million units. The company said it would file a letter of award (LOA) notification upon receipt of the LOA.

Meanwhile, RKFL shares have risen nearly 40% over the past six months, with a 3% decline in the S&P BSE Sensex. Over the past year, it has gained 51%, compared with a 4.4% gain for the benchmark index.

RKFL manufactures forged and CNC-machined components for the automotive, rail, defence, oil and gas, and mining industries. It manufactures transmission and axle components for the automotive industry, including shafts, gearboxes, crown wheels, pinions, spindles and bearing rings. RKFL has six manufacturing plants in India with a total installed capacity of 187,100 tonnes.

Since mid-July 2022, the stock has been trading positively after its 20-day SMA exceeded its 50-day SMA (daily moving average). The bias remains positive as the 20-DMA at Rs 269.30 beats the 50-DMA at Rs 268.

The stock is currently trading above the high end of the daily Bollinger Bands of Rs 284.50, which is a bullish sign.

However, consolidation appears warranted as the stock has gained 99% from its June low of Rs 146. The monthly chart shows that a correction phase may start if the stock fails to sustain above the Rs 282 level. On the downside, the stock may test above Rs 240 levels.