Moneycontrol Be a Pro
Get App
Last Updated : Jun 13, 2019 03:17 PM IST | Source:

Buy Ramkrishna Forgings; target of Rs 640: Dolat Capital

Dolat Capital is bullish on Ramkrishna Forgings has recommended buy rating on the stock with a target price of Rs 640 in its research report dated May 27, 2019.

Broker Research @moneycontrolcom
  • bselive
  • nselive
Todays L/H

Dolat Capital's research report on Ramkrishna Forgings

Ramakrishna Forgings (RMKF) 4QFY19 revenue was broadly in line with our estimates. EBITDA margin contracted by 68bps on YoY basis to 20.2%, due to a negative operating leverage, while PAT was suppressed by a higher depreciation and interest cost. The company is aspiring for higher growth in the export markets, which will offset the weak industry growth domestically. Also, the management has learnt from the past and is taking steps to keep debt levels under check. Thus, the company is executing its capex in a calibrated manner – announced capacity expansion (capex of `4-5bn / +50k MT) will now be incurred in phases, which will keep gearing at the existing levels (0.9X).


We recommend a BUY rating, with a TP of ` 640 (based on 14x FY21E EPS).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jun 13, 2019 03:17 pm
Follow us on
Available On
PCI DSS Compliant