Ramkrishna Forgings logo

Ramkrishna Forgings

RKFORGE NSE

Key Fundamentals

MicrocapAuto ComponentsAutomobiles
Market Cap
₹12,737 Cr
Volatility
Moderate
P/E Ratio
120.95
EBITDA
₹656 Cr
Return on Equity
2.18%
Debt to Equity
0.74
Book Value
₹180.78
EPS
₹19.02
52W High
₹772.8
52W Low
₹460.15

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

1
  • Company's working capital requirements have reduced from 28.5 days to 13.1 days

Weaknesses

3
  • Stock is trading at 3.93 times its book value
  • Company has low interest coverage ratio.
  • Company has a low return on equity of 9.75% over last 3 years.

Growth Rate

Revenue Growth
4.7% lower than 3Y
Net Income Growth
-78.35% lower than 3Y
Cash Flow Change
—
ROE
-80.04% lower than 3Y
ROCE
-20.36% higher than 3Y
EBITDA Margin (Avg.)
6.93% higher than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 30d ago
AI opinion · based on fundamentals
Risk high

Ramkrishna Forgings Ltd is a mid-cap auto-ancillary company with a market cap of ~₹13,374 crore trading at a PE of 125x. FY25 consolidated revenue grew 9% YoY to ~₹4,034 crore, but TTM profit declined 60% and the 3-year ROE stands at ~10%. The company is in a heavy capex phase with total forging capacity reaching 268,400 metric tons after major additions in FY25.

Bull Case 8
  • FY25 revenue grew 9% YoY to ~₹4,034 crore, with 5-year sales CAGR of 27% demonstrating strong top-line compounding
  • Significant capacity expansion in FY25 — added 25,000 tons cold forging and 14,250 tons hot/warm forging, bringing total installed capacity to 268,400 metric tons with further expansion to 311,400 tons planned by Q1FY26
  • Working capital efficiency improved sharply from 28.5 days to 13.1 days, freeing up cash for operations and debt servicing
  • 5-year compounded profit growth of 30% indicates the earnings decline is recent and the longer-term trend has been positive
  • Stock has delivered a 10-year CAGR of 25% and 5-year CAGR of 31%, reflecting long-term value creation
  • Export revenue share was 44.3% in Q1FY25 (up from 42.5% in FY24), providing geographic diversification and dollar-denominated earnings
  • Management targets ₹10,000 crore revenue by FY30 with 15-20% annual volume growth, supported by a strong order book and new product lines including EV and non-automotive components
  • FY25 PAT of ~₹332 crore was higher than FY24's ₹283 crore on a full-year basis, suggesting underlying profitability improvement despite quarterly volatility
Bear Case 8
  • PE ratio of 125x is extremely elevated for a cyclical auto-ancillary company, implying very high growth expectations already priced in
  • TTM profit declined 60% and 3-year compounded profit growth is -32%, indicating severe recent earnings deterioration
  • Low interest coverage ratio signals that debt servicing is consuming a significant share of operating profits, elevating financial risk
  • Debt-to-equity ratio of 0.74x with heavy ongoing capex (₹170 crore additional expansion announced) could stretch the balance sheet further if margins stay compressed
  • 3-year ROE of only 9.75-10% is below cost of equity for most investors, yet the stock trades at 4.05x book value — a significant premium for that level of return
  • Last year ROE collapsed to 3%, indicating very poor capital efficiency in the most recent period
  • Dividend yield of just 0.14% offers negligible income support to shareholders during periods of capital depreciation
  • Export mix dropped from ~44% to ~32% due to tariff-related disruptions, exposing the company to geopolitical and trade policy risks

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 28d ago
Headwinds 2
  • FY26 PAT crashes 78% Aug 5

    PAT dropped 78.47% to ₹865 crore for FY26, driven by higher finance costs and export declines, despite a 15.75% rise in EBITDA to ₹566 crore.

  • SMALLCAP World Fund exits stake Jul 17

    SMALLCAP World Fund sold 4.56M shares on July 15, 2026 via open market, reducing its stake to 4.48%, signalling institutional concern.

Positives 3
  • Q1FY27 profit surges 298% YoY Jul 27

    Consolidated net profit jumped 298% YoY to ₹46.88 crore in Q1FY27, with revenue up 19.8% to ₹1,216.67 crore and EBITDA margin expanding to 17.96%.

  • ₹170 crore capex for expansion Jul 27

    Company announced ₹170.52 crore capex for a new 4000 MT press line, signalling capacity growth.

  • Zero fatalities, emissions down 9.4% Aug 5

    BRSR report shows zero workplace fatalities and a 9.40% reduction in Scope 1 & 2 emissions for FY26, with a net zero target by 2040.

Neutral 3
  • Promoter entity reclassified to public Aug 6

    Maa Chandi Financial Advisory Services Pvt Ltd reclassified from promoter to public category after receiving NOCs from BSE and NSE under SEBI LODR Regulation 31A.

  • 44th AGM on August 29 Aug 5

    AGM scheduled for August 29, 2026 with key resolutions including re-appointing Naresh Jalan as MD and redesignating Chaitanya Jalan to Joint MD.

  • Q1FY27 earnings call held Jul 25

    Earnings conference call for Q1FY27 was held on July 24, 2026 at 4:30 PM IST with MD and CFO participation.

TL;DR: Ramkrishna Forgings is recovering from a brutal FY26 where PAT fell 78%, but Q1FY27 shows strong sequential improvement with 298% profit growth and margin expansion. The ₹170 crore capex signals management confidence in demand, though export weakness and elevated finance costs remain risks. Institutional selling by SMALLCAP World Fund adds near-term overhang. The trend appears to be improving operationally, but the stock needs sustained margin recovery and export stabilisation to rebuild confidence.

Quarterly Results

Particulars Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
892
899
996
974
959
1,054
1,074
947
1,015
908
1,099
1,217
1,217
Expenses
700
699
776
786
791
888
948
849
873
790
936
1,014
999
Operating Profit
192
200
220
188
169
165
126
98
142
118
162
203
218
OPM %
22%
22%
22%
19%
18%
16%
12%
10%
14%
13%
15%
17%
18%
Other Income
5
7
4
19
11
84
4
11
4
6
-9
2
3
Interest
36
38
39
34
36
39
42
49
49
53
51
57
57
Depreciation
57
61
68
72
62
60
64
85
80
80
84
88
99
PBT
104
109
117
100
80
151
24
-24
17
-10
18
59
65
Tax %
24%
24%
25%
34%
32%
7%
12%
-945%
32%
-8%
25%
5%
28%
Net Profit
79
82
87
66
55
140
21
200
12
-10
14
56
47
EPS in Rs
4.91
5
4.8
3.66
3.03
7.72
1.16
11.04
0.65
-0.52
0.75
3.08
2.57
Figures in ₹ Crores

Profit & Loss

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
754
908
921
1,491
1,931
1,216
1,289
2,320
3,193
3,705
4,034
4,238
4,440
Expenses
623
727
758
1,202
1,545
1,008
1,065
1,802
2,499
2,931
3,474
3,611
3,739
Operating Profit
131
181
163
289
386
209
224
518
694
774
561
627
701
OPM %
17%
20%
18%
19%
20%
17%
17%
22%
22%
21%
14%
15%
16%
Other Income
12
2
7
4
3
6
5
1
4
36
109
2
2
Interest
32
55
78
73
84
80
81
97
122
147
167
212
219
Depreciation
32
53
75
85
121
121
117
169
202
257
271
333
353
PBT
79
75
17
135
184
15
32
253
374
406
231
84
131
Tax %
5%
27%
33%
30%
35%
34%
35%
22%
34%
28%
-80%
15%
—
Net Profit
75
55
11
95
120
10
21
198
248
291
415
72
107
EPS in Rs
5.49
3.81
0.78
5.82
7.36
0.59
1.29
12.36
15.52
16.11
22.93
3.95
5.88
Div. Payout %
7%
11%
26%
3%
4%
0%
0%
14%
13%
12%
9%
25%
—
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
27
29
29
33
33
33
32
32
32
36
36
36
Reserves
383
442
440
726
840
843
851
1,046
1,290
2,598
3,001
3,254
Borrowings
735
882
957
845
912
993
1,233
1,618
1,333
1,207
2,126
2,449
Other Liabilities
297
332
433
452
417
361
587
785
1,076
1,422
1,364
1,423
Total Liabilities
1,442
1,685
1,858
2,056
2,201
2,230
2,703
3,481
3,731
5,262
6,528
7,162
Fixed Assets
532
947
1,024
1,076
1,114
1,175
1,240
1,473
1,693
2,428
2,992
3,762
CWIP
316
35
50
44
130
219
276
129
91
216
498
337
Investments
0
0
0
0
0
0
0
55
0
125
190
241
Other Assets
594
702
783
936
957
836
1,187
1,823
1,947
2,492
2,848
2,823
Total Assets
1,442
1,685
1,858
2,056
2,201
2,230
2,703
3,481
3,731
5,262
6,528
7,162
Figures in ₹ Crores

Cash Flow

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
44
104
144
127
267
254
140
43
745
621
33
840
Investing
-272
-169
-107
-110
-254
-231
-222
-354
-299
-1,117
-912
-929
Financing
214
67
-37
-17
-12
-22
147
280
-438
625
722
235
Net Cash Flow
-14
1
-1
0
1
1
65
-31
8
129
-157
146
Free Cash Flow
-247
-67
34
15
13
27
-91
-256
390
35
-932
-39
CFO/OP
45
66
91
52
81
125
63
17
117
99
30
136
Figures in ₹ Crores

Ratios

Particulars Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
145
136
176
126
96
103
162
140
89
84
88
68
Inventory Days
169
206
227
153
131
260
252
251
228
207
230
211
Days Payable
150
164
298
154
110
155
248
215
199
199
197
193
Cash Conversion Cycle
164
178
105
125
117
208
166
176
118
91
121
86
Working Capital Days
-3
-4
-65
16
20
-1
6
46
38
54
19
13
ROCE %
11%
10%
7%
14%
16%
5%
6%
15%
19%
17%
7%
6%

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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Shareholding Pattern

DIIs5.09%Promot.43.39%Others11.15%Public19.94%FIIs20.43%As ofJun 2026
15.49% of promoter holding pledged as of Jun 2026

Documents

Frequently Asked Questions about Ramkrishna Forgings

What does Ramkrishna Forgings Ltd do?
Ramkrishna Forgings Ltd is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coaches and engineering parts. [1][2] It is the 2nd largest forging player in India.[3]
Where is Ramkrishna Forgings Ltd (RKFORGE) listed?
Ramkrishna Forgings Ltd trades as RKFORGE on the NSE and under code 532527 on the BSE.
Which sector does Ramkrishna Forgings Ltd belong to?
Ramkrishna Forgings Ltd is classified under the Automobiles sector, in the Auto Components industry.
What is the market capitalisation of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd has a market capitalisation of ₹12,737 Cr, which places it in the Mid Cap band.
What is the PE ratio of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd trades at a PE ratio of 120.95, on earnings per share of ₹19.02, against a book value of ₹180.78 per share.
What is the 52-week high and low of Ramkrishna Forgings Ltd?
Over the last 52 weeks Ramkrishna Forgings Ltd has traded between ₹460.15 and ₹772.8.
Does Ramkrishna Forgings Ltd pay dividends?
Ramkrishna Forgings Ltd has a dividend yield of 0.14%.
What is the Return on Equity (ROE) of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd reported a return on equity of 2.18%. Its debt-to-equity ratio is 0.74.

Company Information

Ramkrishna Forgings Ltd is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coaches and engineering parts. [1][2] It is the 2nd largest forging player in India.[3]

Website ramkrishnaforgings.com
CEO Mr. Naresh Jalan
Employees 2,776
Listed 2004-05-05
Face Value ₹ 2
Issued Size 18,10,30,604

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