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INVESTMENT INSIGHTS

Check Before You Invest : Ramkrishna Forgings Ltd

BSE: 532527 NSE: RKFORGE ISIN: INE399G01023
  |   Sector:  Automobiles   |   Industry:  Forgings

Snapshot

Q.1 Which industry/sub-sector does Ramkrishna Forgings Ltd belong to?
Ramkrishna Forgings Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.
Q.2 Is Ramkrishna Forgings Ltd a good quality company?
Ramkrishna Forgings Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Ramkrishna Forgings Ltd undervalued or overvalued?
Ramkrishna Forgings Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Ramkrishna Forgings Ltd a good buy now?
Ramkrishna Forgings Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd revenue growth is 2% for FY-2025 , which is below its 5 year CAGR of 27.1% , indicating slower growth.
Q.2 Gross Profit margin of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.4% for FY-2025 , which is below its 5 year median of 18% , indicating decreasing margins.
Q.3 Operating Profit Margin of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.17% for FY-2025 , which is below its 5 year median of 21.31% indicating decreasing margins.
Q.4 Net Profit Margin of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Net Profit Margin is 8.22% for FY-2025 , is in line with with its 5 year median of 8.22%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 10.4 18
Operating Profit Margin 14.17 21.31
Net Profit Margin 8.22 8.22
Q.5 Return on Asset of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Return on Asset is 5.55(x), which is below its 5 year historical median of 6.35(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Return on equity is 11.66% for FY-2025 , which is below its historical median of 17.22%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Return on capital employed is 7.12% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 13.5%, indicating value preservation.
Q.8 Cash conversion cycle of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Cash conversion cycle is 141 , above its historical median of 141 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.68 0.74
ROE 11.66 17.22
ROCE 7.12 14.66
Cash Conversion Cycle 141 141
Q.9 Debt to Equity ratio of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Debt-to-Equity ratio is 0.67 , which is above with the industry average of 0.49 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Ramkrishna Forgings Ltd?
Ramkrishna Forgings Ltd Debt to cash flow from operations is 61.84 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ramkrishna Forgings Ltd?
Promoters hold 43.13% of the Ramkrishna Forgings Ltd, with 15.76% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ramkrishna Forgings Ltd vs industry peers?
Ramkrishna Forgings Ltd revenue CAGR is 27.10% , compared to the industry median CAGR of 11.56% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 4,034.1 115.9
Gross Profit 419.5 8.3
Operating Profit 561 13
Net Profit 332 4
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.68 0.92
ROE 11.66 14.91
ROCE 7.12 14.66
Cash Conversion Cycle 140.75 112

Valuation & price assessment

Q.1 Stock return of Ramkrishna Forgings Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 20.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 20.9% 38.9% 20.1% -27.9%
Q.3 Valuation ratios of Ramkrishna Forgings Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 45.95 0.00 50.79
Price to Book 3.08 0.89 3.87
Price to Sales 2.5 0.80 1.86
EV to EBITDA 22.46 12.69 16.47

Check more companies

1. Happy Forgings
2. Ramkrishna Forgings
3. Balu Forge Industrie
4. MM Forgings
5. Amic Forging
6. Tirupati Forge
7. Kalyani Forge
8. LGB Forge
9. Krishanveer Forge
10. Hilton Metal Forging
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