US-based venture capital firm buys stake in THIS auto stock. Do you own?

Ramkrishna Forgings share price rallied over 3.12 per cent to ₹945.75 on Tuesday’s trading session after UK-based venture capital firm SMALLCAP World Fund increased its stake in the auto company on Monday.

According to the exchange filing, the company has acquired 12,698,933 shares of Ramkrishna Forgings, increasing its total ownership to 7 per cent. As per the shareholding pattern available on the stock exchange for September, the venture capital firm previously held a 6.73 per cent stake in the auto company.

The shareholding pattern for December is yet to be declared.

Ramkrishna Forgings stock performance

The stock has exhibited a consistent upward trajectory since 2019, weathering market fluctuations with minimal corrections. Notably, it has closed on a positive note for the past four consecutive calendar years, with the strong momentum carrying over into the current year.

Over the last three years, the stock has achieved a remarkable return of 354.85% and an extraordinary 1,869 per cent over the past five years. During this time, its price has skyrocketed from ₹53 to its current level of ₹1,028.

Brokerage firm UBS initiated coverage in October with a ‘buy’ call on the stock, with a target price of ₹1,500 per share.

UBS is optimistic about Ramkrishna Forgings, anticipating that the company will surpass its competitors as it evolves from a forged product manufacturer to a comprehensive assembly provider, offering clients seamless one-stop solutions.

“We flag significant opportunities in aluminium forging and entry into the electric vehicle (EV) vertical, and fabrication and assembly work for the earth moving and agricultural segments, Vande Bharat Express train orders and entry to the two-wheeler segment,” UBS stated in a research note.