Buy Ramkrishna Forgings: target of Rs 940: Sharekhan
Sharekhan is bullish on Ramkrishna Forgings has recommended buy rating on the stock with a target price of Rs 940 in its research report dated July 26, 2021.
July 27, 2021 / 11:41 AM IST
Sharekhan's research report on Ramkrishna Forgings
Q1FY2021 results were ahead of our expectations, aided by EBITDA margin expansion on a richer product mix and price hikes. Earnings to report a strong 146% CAGR over FY2021-FY2023E, driven by a 26.5% CAGR in domestic revenue, 38.6% CAGR in export revenue, and a 170 bps rise in EBITDA margin over FY2021-FY2023E. The stock trades at P/E multiple of 15.4x and EV/EBITDA multiple of 7.2x its FY2023E estimates.
We maintain our Buy rating on Ramkrishna Forgings Limited (RKFL) with a revised PT of Rs. 940, led by a strong commercial vehicle (CV) business outlook in India, Europe, and North America and an earnings upgrade.
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