Ramkrishna Forgings share price tumbles 12% to fresh 52-week low. What's behind the fall in this BSE 500 stock?

Stock market today: Shares of Ramkrishna Forgings, an auto components and equipment manufacturer, cracked nearly 12% on Monday, April 28, to hit a fresh 52-week low after the company flagged discrepancies in its inventory.

The company said that during the physical verification of inventory undertaken by the company for the financial year ended March 31, 2025 (FY25), which commenced from 6 April, 2025, it was observed that there have been discrepancies in certain cases of inventory.

According to the internal estimates of Ramkrishna Forgings, there will likely be an adverse impact of 4%-5% on the net worth of the company, it said in an exchange filing over the weekend.

Mitigation Steps

In order to mitigate the adverse impact of the discrepancies in the inventory, the company's Audit Committee Meeting, on Saturday, April 26, approved the appointment of Independent External Agencies to conduct a joint fact-finding study for the discrepancy in inventory and reasons thereof.

“The decision to make the aforesaid appointment has been taken by the Audit Committee in the interest of ensuring transparency, accountability and adherence to the highest standards of Corporate Governance and to mitigate future recurrence of such nature,” Ramkrishna Forgings said in a filing.

The promoters also affirmed their support for the company and said they are firmly committed to protecting and preserving the stakeholders’ interests to uphold the highest standards of Corporate Governance.

Further, in order to mitigate the potential adverse impact assessed upon conclusion of the factfinding study, the promoters are giving an assurance to the investors that they intend to fund the same through permissible instruments as permitted under applicable laws, the release said.

Ramkrishna Forgings Shares: How to trade now?

Ramkrishna Forgings share price witnessed a gap-down start following the disclosures made by the company over the weekend.

The BSE 500 stock, with a market capitalisation of 10,860 crore, opened 12% lower against its previous closing price at ₹579. This is also the 52-week low price that Ramkrishna Forgings shares hit today.

As of 10.42 am, Ramkrishna Forgings stock recouped some losses and was trading at ₹600.15 apiece, down 8.55%, on the BSE.

Anshul Jain, Head of Research at Lakshmishree Investments, said that after a buying climax, the stock has corrected 43% and is now forming an 8-week base between 850 and 600. However, the absence of institutional accumulation suggests a higher probability of a breakdown, he added.

"A decisive breach below 600 could lead to a sharp fall towards 540. On the contrary, if a bear trap develops around 600, the stock could continue to consolidate within the 600–850 range for a few more weeks before a decisive move," Jain said.

Meanwhile, Riyank Arora, Technical Analyst at Mehta Equities, said Ramkrishna Forgings is currently trading near ₹605, with a critical support level placed at ₹580. 

“A decisive break below this support could trigger a sharp downward move, indicating growing bearish sentiment. Alternatively, the stock faces resistance at ₹630– ₹635; a sustained move above this zone could shift the short-term trend back in favour of the bulls. At present, the stock remains in a neutral to cautious territory, and traders should closely track the price action around these key levels,” Arora added.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.