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.
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.