Shares of Ramkrishna Forgings are selling for near fresh highs. Know why

Shares of Ramkrishna Forgings, an auto ancillary supplier, traded near fresh highs after the company's quarterly income surged on the back of rising exports.

Ramkrishna Forgings said its first quarter profit jumped 200 percent to 17.7 crore rupees compared with 5.90 crore rupees in the same quarter a year ago. Sales rose 91 percent to 235.5 crore rupees during April-June compared with 123.2 crore rupees in the year ago period. Profit was boosted mainly by the four-fold rise in exports to 130 crore rupees.

Ramkrishna Forgings leapt 21 rupees, or 13.1 percent, to 719 rupees on the National Stock Exchange, where 10 crore rupees worth of shares were traded 10:50 am compared with a transacted volume of 15 crore rupees on Friday.

Ramkrishna Forgings' market capitalisation has soared 203 percent to 1,919 crore rupees over one year as investors bought into India's growing auto boom.

Image credit: Indiatimes