Rs.2000 crore topline likely in next few years: Alok Sharda, Ramkrishna Forgings

Sharda expects the auto sector to be very positive in the next 1-2 years and with the product mix and operational leverage getting improved, he expects the margins to go up

The global reductions and inventory adjustments are having a negative impact on industries like railway, automobile, mining, bearing etc. Ramkrishna Forgings, a preferred supplier of forged and rolled components for such industries, has also experienced a negative demand in the global market.

Speaking to CNBC TV18 on inventory adjustment, Alok Sharda, CFO, Ramkrishna Forgings said that presently, the domestic demand is doing excellent which is expected to contribute a growth of 40-45% for the company. Also, the global demand is expected to pick up in another one or two months, he added.

"With the support of the global market combined with the domestic market which looks very positive in Q4, the topline growth is expected to see a rise to Rs.2000 crore from the current Rs.750 crore, over the next couple of years".

Sharda expects the auto sector to be very positive in the next 1-2 years and with the product mix and operational leverage getting improved, he expects the margins to go up definitely.

Stock View

Ramkrishna Forgings Ltd is currently trading at Rs. 524.05, down by Rs. 4.85 or 0.92% from its previous closing of Rs. 528.9 on the BSE.

The scrip opened at Rs. 520 and has touched a high and low of Rs. 529 and Rs. 512.1 respectively. So far 12020(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 1516.35 crore.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 779.5 on 04-Aug-2015 and a 52 week low of Rs. 302 on 26-Dec-2014. Last one week high and low of the scrip stood at Rs. 564 and Rs. 526.9 respectively.

The promoters holding in the company stood at 50.37 % while Institutions and Non-Institutions held 22.99 % and 26.65 % respectively.

The stock is currently trading above its 200 DMA.