Shares of Ramkrishna Forgings rose on December 28 after the company received a Letter of Intent (LoI) from Mexico.
Ramkrishna Forgings has received an LoI worth Rs 22.5 crore (USD 3 million) per annum from a major tier-1 axle manufacturer in Mexico for the manufacturing of front axle beam, the company said in an exchange filing.
The stock was trading at Rs 946.95, up Rs 11.95, or 1.28 percent at 11:25 hours. It touched an intraday high of Rs 957.35 and an intraday low of Rs 932.15.
The scrip was trading with volumes of 142,510 shares, 40 percent higher than its five-day average of 101,569 shares.
“It gives us immense pleasure to announce our new business acquisition in front axle beams. This notable addition of a major part in the front axle will help us strengthen our exports revenue growth and improve content per vehicle as well," said Lalit Khetan, Executive Director & CFO, Ramkrishna Forgings in the filing.
The company aims to diversify its product portfolio by introducing new and high-quality products, as well as moving up the value chain.
"We will continue to explore new geographies with potential for expansion in order to broaden our reach and sustain our growth in exports business," he added.
The company supplies rolled, forged and machine products to various sectors like automotive, railways, farm equipment, bearings, oil & gas, power and construction, earth moving & mining, both in India and overseas markets.Some of its clients include Tata Motors, Ashok Leyland, VE Commercial and Daimler in India and to Volvo, Mack Trucks, lveco, DAF, Scania, MAN, UD Trucks and Ford Otosan in the overseas markets. It supplies globally to Tier 1 axle manufacturers like Dana, Meritor and American Axles.