Buy Ramkrishna Forgings; target of Rs 580: Sharekhan

Sharekhan's research report on Ramkrishna Forgings

With operating results close to expectations, management has maintained its target of 15-20% volume growth and high margin in FY2024. This was the consecutive sixth quarter when RKFL reported EBITDA margin above 22%. The stock trades at P/E multiple of 17.4x and EV/EBITDA multiple of 9.4x its FY2025E.

Outlook

We reiterate our Buy rating on Ramakrishna Forgings Limited (RKFL) with a revised PT of Rs. 580 on account of its inorganic growth plan and diversification strategies, the expectation of timely commissioning of new capacities, and sustainable operating performance.