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Ramkrishna Forgings Limited (RKFL), established in 1981, specializes in manufacturing forged components for various sectors, including automotive and railways. With facilities in Jharkhand and West Bengal, the company produces critical safety items and components for transmissions and axles. Analysts project a target price of Rs. 1,255 per share, indicating a 29% upside potential, driven by RKFL's strong market positioning and growth prospects.
Ramkrishna Forgings has seen a 33% increase in share value in 2024, significantly outperforming the Nifty 50"s 8% rise. UBS projects a potential upside of nearly 60%, setting a target price of ₹1,500, driven by factors such as EV penetration, recent acquisitions, and growth in various sectors. The company reported a 17.2% revenue growth to ₹1,054 crore and a net profit surge of 131% to ₹190 crore in Q2 FY24, bolstered by a one-time gain from a subsidiary sale.
Ramkrishna Forgings has reported an adjusted PBT of Rs 126.3 crore, aligning with estimates, though APAT fell short due to increased tax provisions. The company maintains a volume growth guidance of 15-20% in the near term. Sharekhan reiterates a Buy rating with a revised target price of Rs 1111, citing strong diversification strategies and a commitment to high operating profit margins. The stock is currently trading at a P/E of 25.7x and an EV/EBITDA of 13.3x based on FY27E estimates.
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