Buy Ramkrishna Forgings; target of Rs 1255: Asit C Mehta

Asit C Mehta report on Ramkrishna Forgings

Ramkrishna Forgings Limited (RKFL) was incorporated in 1981, primarily engaged in the manufacturing and sale of forged components for automobiles, railway wagons & coaches, and engineering parts. Its products include rolled products, forged products, and machined products. RKFL is also a critical safety item supplier for screw coupling, bolster suspension, side frame keys, and draw gear assembly for railway coaches and wagons. The Company has manufacturing facilities in Gamaria, Adityapur industrial area, Baliguma, Dugni at Saraikela, Jamshedpur in Jharkhand, and Liluah in West Bengal. RKFL manufactures forged and computer numerical control machined components for the automobile, railways, defense, oil & gas, and mining sectors. The company produces components for transmissions and axles, including shafts, gearboxes, crown wheels, pinions, spindles, and bearing rings for the automotive sector.

Outlook

Factoring these strengths, we value RKFL at 26X FY27E EPS, setting a target price of Rs. 1,255 per share, implying an upside potential of 29% from the recommended price. This valuation reflects RKFL’s strong positioning to capture emerging industry opportunities and drive long-term growth.