Ramkrishna Forgings hits the ceiling

Ramkrishna Forgings had hit a new high and the upper circuit yesterday and today too, it has hit the 5% upper ceiling and that’s a new high at Rs.193.75.

This seldom heard about smallcap stock, with a market cap of Rs.505 crore and equity of Rs.26.10 crore, has been ‘spotted’ by a domestic mutual fund – SBI Mutual Fund. Usually, it is FIIs reports which have been spiking up stocks and this is rare that a domestic MF is giving this momentum to a stock. SBI MF bought 6.58 lakh shares of the company at Rs.170/share in a bulk deal on 30^th June’14 from the BSE.

The company, which as the name suggests makes forgings for auto, railway and other sectors. It had ended FY14 with a net profit at Rs.8.45 crore, down from Rs.11 crore in FY13.