Ganga Forging's stock got a quick lift, jumping 14% in a single trading session.
What the company announced
The steel‑forging firm said it will start making Elastic Rail Clips, a critical component used to fasten railway tracks. This move is aimed at opening a new growth channel and adding roughly ₹48 crore to its annual revenue.
About Elastic Rail Clips
- Used by Indian Railways to secure rails to sleepers.
- Essential for track stability and safety during construction, maintenance, and replacement.
- Only a few manufacturers in Gujarat, Maharashtra and Rajasthan are currently approved to produce them.
Ganga Forging is applying for approval from the Research Designs and Standards Organisation (RDSO). Once approved, it can supply the clips to Indian Railways and various railway zones.
Financial expectations
- Installed capacity: about 325,000 clips per month.
- Average selling price: roughly ₹120 per clip.
- Projected monthly revenue: around ₹3.9 crore.
- Annual contribution to turnover: about ₹48 crore.
- Estimated net profit margin: **~20%** thanks to specialised forging skills and strong demand.
Stock performance
The penny‑stock, trading under ₹5, closed at ₹3.87 after the news. It has risen roughly 10% year‑to‑date. The 52‑week high is ₹7.80 (Jan 6 2025) and the low is ₹2.70 (Dec 4 2025). Ganga Forging is listed only on the NSE.
What investors should consider
Penny‑stocks can be very volatile and are often subject to speculative trading. While the new product line promises solid revenue and profit potential, it also depends on receiving regulatory approval and winning railway contracts.
Remember, this is perspective, not prediction. Do your own research and consider consulting a financial advisor before making any investment decisions.