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Buy Ramkrishna Forgings target of Rs 329: Sharekhan

Sharekhan is bullish on Ramkrishna Forgings has recommended buy rating on the stock with a target price of Rs 329 in its research report dated January 20, 2023.

January 21, 2023 / 06:54 PM IST
 
 
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Sharekhan's research report on Ramkrishna Forgings

Post registering stable gross margin on q-o-q basis the management has guided to sustain EBIDTA margin at 22% levels led by improvement in product mix and 15-20% growth in exports in FY24E. Scheduled capex of Rs 400-450 cr over FY23E&24E to achieve a revenue potential of Rs 5,000 cr on peak capacity utilization.


Outlook

We maintain our Buy rating on Ramakrishna Forgings Limited (RKFL) with a revised PT of Rs.329, led by strong revenue growth, improving margin profile, and attractive valuations. The stock trades at attractive valuations of 9.7x P/E multiple and 5.3x EV/EBITDA multiple on FY2025E, respectively.