Ramkrishna Forgings Ltd.

NSE: RKFORGE · Auto Components & Equipments

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52W Range₹460 – ₹773

Snapshot

Unlock Ramkrishna Forgings Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Ramkrishna Forgings Limited manufactures and supplies a wide range of open and closed die forgings using carbon, alloy, and stainless steel. The company serves diverse sectors including automotive, earth moving, mining, railways, and general engineering.

Business Model

The company generates revenue by supplying forged components to original equipment manufacturers (OEMs) and various industrial sectors. It operates through two primary segments: Forging Components and Others, which includes ancillary services.

Growth Outlook

Growth is driven by the expansion of its product portfolio across multiple heavy industries and increasing demand from the automotive and railway sectors. The company continues to leverage its manufacturing capabilities to cater to both domestic and international markets.

Key Risks

  • Cyclicality of Automotive Industry. The company's performance is heavily dependent on the automotive sector, which is subject to cyclical demand fluctuations.
  • Raw Material Price Volatility. Fluctuations in the prices of steel and other alloy materials can significantly impact operating margins.
  • Export Market Dependency. Exposure to international markets introduces risks related to geopolitical instability, currency fluctuations, and global trade policies.
  • Intense Competition. The forging industry is highly competitive, requiring continuous investment in technology and process efficiency to maintain market share.

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Key Metrics

REVENUE

₹4,937 Cr

TTM · consolidated

+25.2%YoY

NET PROFIT

₹187 Cr

TTM · consolidated

-38.0%YoY

EPS

₹10.30

TTM · consolidated

-38.2%YoY

RETURN ON EQUITY

5.6%

TTM · consolidated

-4.2 ppYoY

RETURN ON CAPITAL EMPLOYED

9.4%

TTM · consolidated

+2.6 ppYoY

P/E

67.6×

Q2 FY27 · consolidated

67.6 vs 44.6x5Y avg

EV/EBITDA

17.2x

Q2 FY27 · consolidated

17.2 vs 21.1x5Y avg

EBITDA MARGIN

17.4%

TTM · consolidated

+1.5 ppYoY

NET PROFIT MARGIN

5.0%

Q2 FY27 · consolidated

+6.0 ppYoY

DEBT TO EQUITY

0.6x

Q2 FY27 · consolidated

-0.24xYoY

Peers · Auto Components & Equipments

CompanyMkt CapP/E (TTM)EV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Ramkrishna Forgings Ltd.RKFORGE
₹12,681 Cr67.6×17.2325.2%17.4%5.6%9.4%+28.2%
SEDEMAC Mechatronics LimitedSEDEMAC
₹13,889 Cr———20.0%———
Lumax Auto Technologies LimitedLUMAXTECH
₹13,730 Cr37.9×17.4832.8%14.9%34.2%30.0%+78.6%
Amara Raja Energy & Mobility Ltd.ARE&M
₹12,966 Cr14.1×7.9012.7%11.3%11.9%15.4%-29.5%
Varroc Engineering LimitedVARROC
₹12,093 Cr61.3×14.5114.7%9.2%12.0%20.0%+29.4%
ASK Automotive LimitedASKAUTOLTD
₹11,590 Cr36.6×20.6927.9%12.7%26.9%28.7%+21.5%

As of Q2 FY27

Financials