Shares of Ramkrishna Forgings hit an all-time high of Rs 310, surging 10% on the BSE in heavy intraday trading on Thursday. Shares of the foundry and forging company surpassed the previous high of Rs 290.75 hit on March 15, 2023.

In less than 10 months, the market price of Ramkrishna Forgings has increased by 107% from the level of Rs 149.55 on June 22, 2022. Over the past year, it has rallied nearly 70% while the S&P gained 0.39%.

The Ramkrishna Forgings and Titagarh Wagons Consortium (RKFL-TWL Consortium) on Wednesday received the Letter of Acceptance (LOA) from the Ministry of Railways, Government of India, for the “Manufacture and Supply of Forged Wheels under the long-term agreement of Aatma Nirbhar Bharat”.

The company said the contract size is Rs 12,226.50 crore to manufacture and supply 1.54 million forged wheels of various rolling stock to the Ministry of Railways over 20 years under the terms and conditions of the agreement.

Ramkrishna Forgings was trading 9% higher at Rs 306.70 at 2:58 pm, while the S&P BSE Sensex rose 0.27%. The average transaction volume over the counter today has increased almost five times. A total of 2.5 million company shares changed hands on the NSE and BSE.

Indian Railways has been focused on pursuing growth with a focus on the Make in India policy under the government’s Aatma Nirbhar Bharat initiative.

The consortium will establish a manufacturing plant in India to produce forged wheels. It will supply about 1.6 million wheel discs from the different rolling stock of Indian Railways at a rate of about 80,000 wheels per annum for 20 years.

Ramkrishna Forgings has an installed annual capacity of 187,100 tonnes after commissioning the hollow main axis, a new 7000-ton press line, a 2000-ton warm/thermoforming press and a fabrication facility.

Over the years, the company has increased its forging and die-making capabilities and added machining and heat treatment facilities, including isothermal annealing, enabling it to undertake component manufacturing for OEMs and Tier 1 companies.

Ramkrishna Forgings is a preferred supplier to OEMs such as Tata Motors, Ashok Leyland, VE Commercial and Daimler in India, Volvo, Mack Trucks, Iveco, DAF, Scania, MAN, UD Trucks and Ford Otosan in overseas markets. It supplies Tier 1 axle manufacturers such as Dana, Meritor and American Axles worldwide.