Buy Ramkrishna Forgings; target of Rs 1029: Sharekhan

Sharekhan's research report on Ramkrishna Forgings

Despite a 5.8% miss in revenue APAT came in line at Rs 91 crore on in line adj. EBITDA margin at 23.1%.It received orders of Rs 1679 crore in Q1FY25 and hence it maintained 15%-20% volume growth guidance for FY25.Stock trades at P/E multiple of 28.1x and EV/ EBITDA multiple of 14.4x its FY26E estimates.

Outlook

We maintain a Buy on the stock with an revised PT of Rs. 1029 on its diversification strategies, robust guidance, a firm business plan and management’s focus on sustaining high OPM.