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Ramkrishna Forgings Ltd. Stock Analysis

Small Cap
Evaluated by 521 users | BSE: 532527 | NSE: RKFORGE |
Forgings
Ramkrishna Forgings Limited was founded on November 11, 1981.On a bed of integrity, fuelled by burning ambition, years of staying true to their principles and tireless endeavour has produced rich results. It became a limited company on May 25, 1995. And today its is an organisation manned by...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Ramkrishna Forgings Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 005.62%3.54%9.54%7.61%4.5%9.67%10.52%3.79%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 004215609071,0889211,4911,9311,216
Y-o-Y Gr. Rt.-NANA33%61.8%19.9%-15.4%61.9%29.5%-37%
Adjusted EPS (Rs.) 004.152.926.1619.682.7129.1736.634.09
Y-o-Y Gr. Rt.-NANA-30.1%802.1%-24.8%-86.2%976.4%25.6%-88.8%
Book Value per Share (Rs.) 00112.7120.46146.97163.71162.16230.92265.66266.72
Adjusted Net Profit 008.87.671.956.47.895.111913.3
Net Op. Cash Flow (Rs. Cr.) 00-66.819.843.7104144127267254
Debt to Cash Flow from Ops 00-3.9425.8916.828.526.666.653.413.89
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Ramkrishna Forgings Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales NA6.1%9.7%-37%
Adjusted EPS NA-31%14.7%-88.8%
Book Value per Share 012.7180.4
Share Price 18.4% -3.9% -15.2% 26.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 003.482.6419.6412.811.6515.4914.651.53
Operating Profit Margin (%) 0015.0510.4414.6516.917.619.3819.9817.55
Net Profit Margin (%) 001.891.357.925.190.846.386.191.1
Debt to Equity 001.111.631.821.882.061.121.051.14
Working Capital Days 000233195205273211184274
Cash Conversion Cycle 0001018599119118126186
Entity Percentage Holding
Promoters 45.89%
Institutions 23.04%
Non-Institutions 30.61%
Others 0.46%
Pledged *5.2511.3512.0212.7014.5717.4817.4827.9426.8534.32
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Ramkrishna Forgings Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Ramkrishna Forgings Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Ramkrishna Forgings Ltd.'s performance infers:

Ramkrishna Forgings Ltd. earnings have declined by -31%, whereas share price has depreciated -3.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Ramkrishna Forgings Ltd. share prices over the last 10 years. Here is what we found out:

Ramkrishna Forgings Ltd. share price has depreciated 13.6% annually over the past ten years.

Ramkrishna Forgings Limited was founded on November 11, 1981.On a bed of integrity, fuelled by burning ambition, years of staying true to their principles and tireless endeavour has produced rich results. It became a limited company on May 25, 1995. And today its is an organisation manned by qualified people, with state-of-the-art manufacturing facilities and international levels of quality control.

The company is in the approved panel of R.D.S.O. for the manufacture of Screw Couplings,

Ramkrishna Forgings Limited was founded on November 11, 1981.On a bed of integrity, fuelled by burning ambition, years of staying true to their principles and tireless endeavour has produced rich results. It became a limited company on May 25, 1995. And today its is an organisation manned by qualified people, with state-of-the-art manufacturing facilities and international levels of quality control.

The company is in the approved panel of R.D.S.O. for the manufacture of Screw Couplings, Draw Gear Assembly, Snubber Assembly, Hanger, Block Hanger Side Frame Key and various other forgings items of Railway Coaches and Wagon. It is also in the approved panel of Hindustan Motors Ltd., TELCO Ltd., BEML Ltd., and many other engineering units. The company is an ISO 9002 approved unit accredited by BVQI since 15th August 2000 for manufacture & supply of open & closed plain carbon and low alloy steel forgings in the as- Forged, Heat Treated and Machined condition for Railways, Automobile and General Engineering Purposes.

Apart from standard products, the company undertakes turnkey development of forgings and stampings from raw samples. It also designs and develops special dies for customers. Whatever be the requirement customer knows that Ramkrishna Forgings will deliver the specified quality and within specified time to its satisfaction.

The company also exports its products to Germany, USA, Mexico, Brazil, Bangladesh, Sri Lanka and Japan.

Product range of the company include:

  • AS Forged & Heat Treated Items
  • Machined Items

Apart from standard products, the company undertakes turnkey development of forgings and stampings from raw samples. It also designs and develops special dies for customers. Whatever be the requirement customer knows that Ramkrishna Forgings will deliver the specified quality and within specified time to its satisfaction.

Different divisions of the company are:

  • Raw material & cutting section
  • Die making
  • Raw material heating
  • Open Die/ Close Die
  • Upset forging
  • Ring Rolling
  • Heat treatment
  • Shot blasting
  • Machining
  • Cad Cam Facility

Achievements/ recognition:

  • ISO 9001 (2000) By BVQI
  • ISO/TS 16949 (Plant I)
  • ISO/TS 16949 (Plant III & IV)

Future plans:

  • Projects under commissioning- Gear Cutting Facilities & Horizontal Machining Centre - Different Types of Gears & machining of assembly for automobile Industry.
  • Expansion Programme- Ring Rolling Line - It is a fully automated robotic line imported from SMS Eumuco, Germany, which will help the company to increase its production capacity considerably. The company will able to manufacture crown wheels & the bearing races through this route economically & with high productivity and will also help the company to increase its export market.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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