Penny Stock Under Rs 5: This Forging Company Enters Elastic Rail Clip Market for Indian Railways

Ganga Forging Limited, a steel forging manufacturer with more than three decades of industry presence, has announced its entry into the Elastic Rail Clip (ERC) segment, a vital component used across the Indian Railways network. Elastic Rail Clips play a key role in fastening and securing rails to sleepers, supporting track durability, operational safety and structural stability. These clips are deployed widely in the Construction, maintenance and replacement of railway tracks.

The company is currently in the process of securing approval from the Research Designs and Standards Organization (RDSO), under Track Design Engineering, Ministry of Railways. Once approved, Ganga Forging Limited will be eligible to participate in Indian Railways procurement tenders, including those issued by multiple railway zones.

Manufacturing of Elastic Rail Clips in India remains restricted to a limited pool of approved manufacturers, primarily located in Gujarat, Maharashtra and Rajasthan. This restricted supplier ecosystem creates favourable industry dynamics, strengthening visibility and long-term demand prospects for vendors with regulatory clearances.

Ganga Forging Limited has set up an installed manufacturing capacity of around 3,25,000 Elastic Rail Clips per month. At an average selling price of approximately Rs 120 per clip, the segment holds monthly revenue potential of about Rs 3.9 crore. On an annualised basis, the ERC product line could contribute nearly Rs 48 crore to the company’s turnover. The company further expects a net profit margin of around 20 per cent from this business line, supported by cost efficiencies, operational strength and steady demand from the railway infrastructure ecosystem.

Ganga Forging Limited serves multiple sectors, including railways, construction, mechanical engineering, oil refineries, power transmission and mining. The company has cultivated a diversified product base with a strong emphasis on manufacturing quality and timely delivery. Its entry into the ERC category aligns with plans to deepen its presence in railway infrastructure components and leverage Indian Railways’ continuing modernisation and expansion initiatives.

The company notes that future performance expectations are dependent on regulatory approvals, market conditions and demand cycles within the rail infrastructure segment.

Disclaimer: The article is for informational purposes only and not investment advice.