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RKFO

Ramkrishna Forgings NSEI:RKFORGE Stock Report

Last Price

₹163.85

Market Cap

₹26.2b

7D

9.8%

1Y

23.6%

Updated

29 Jun, 2022

Data

Company Financials
RKFORGE fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends3/6

RKFORGE Stock Overview

Ramkrishna Forgings Limited manufactures and supplies open and closed die forgings of carbon and alloy steel, micro alloy steel, and stainless steel in India and internationally.

Ramkrishna Forgings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ramkrishna Forgings
Historical stock prices
Current Share Price₹163.85
52 Week High₹252.00
52 Week Low₹130.20
Beta1.11
1 Month Change-1.03%
3 Month Change4.10%
1 Year Change23.58%
3 Year Change71.25%
5 Year Change52.97%
Change since IPO2,039.03%

Recent News & Updates

Jun 28
Ramkrishna Forgings (NSE:RKFORGE) Is Experiencing Growth In Returns On Capital

Ramkrishna Forgings (NSE:RKFORGE) Is Experiencing Growth In Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Shareholder Returns

RKFORGEIN Metals and MiningIN Market
7D9.8%5.3%3.0%
1Y23.6%-17.4%0.3%

Return vs Industry: RKFORGE exceeded the Indian Metals and Mining industry which returned -17.4% over the past year.

Return vs Market: RKFORGE exceeded the Indian Market which returned 0.6% over the past year.

Price Volatility

Is RKFORGE's price volatile compared to industry and market?
RKFORGE volatility
RKFORGE Average Weekly Movement6.6%
Metals and Mining Industry Average Movement7.7%
Market Average Movement7.0%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: RKFORGE is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: RKFORGE's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19811,896Naresh Jalanhttps://www.ramkrishnaforgings.com

Ramkrishna Forgings Limited manufactures and supplies open and closed die forgings of carbon and alloy steel, micro alloy steel, and stainless steel in India and internationally. It operates in two segments, Forging Components and Others. The company offers crown wheels/ring gears; I beams, crankshafts, connecting rods, knuckles, diff cases, center wedges, steering arms, tie rod arms, pitman arms, stub axles, recondition taper stationary plates, spides/crosses, brake flanges, brackets, wheel hubs, yokes, front engine mounting arms, tooth products, hammer bars, track links, bearing caps, counterweights, and ring gear carriers; and pinions, front hubs, prop shafts, counter shafts, rear axle shafts, coupling flanges, engaging gears, CM gears, speed gears, and clutch collars.

Ramkrishna Forgings Fundamentals Summary

How do Ramkrishna Forgings's earnings and revenue compare to its market cap?
RKFORGE fundamental statistics
Market Cap₹26.16b
Earnings (TTM)₹1.98b
Revenue (TTM)₹23.20b

13.2x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RKFORGE income statement (TTM)
Revenue₹23.20b
Cost of Revenue₹13.13b
Gross Profit₹10.07b
Other Expenses₹8.09b
Earnings₹1.98b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)12.38
Gross Margin43.41%
Net Profit Margin8.53%
Debt/Equity Ratio147.5%

How did RKFORGE perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

4%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RKFORGE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RKFORGE?

Other financial metrics that can be useful for relative valuation.

RKFORGE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.8x
Enterprise Value/EBITDA8x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does RKFORGE's PE Ratio compare to its peers?

RKFORGE PE Ratio vs Peers
The above table shows the PE ratio for RKFORGE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average8.9x
590078 Maithan Alloys
3xn/a₹24.6b
500378 Jindal Saw
6.2x25.7%₹25.6b
513434 Tata Metaliks
9xn/a₹21.5b
MIDHANI Mishra Dhatu Nigam
17.5xn/a₹30.8b
RKFORGE Ramkrishna Forgings
13.2xn/a₹26.2b

Price-To-Earnings vs Peers: RKFORGE is expensive based on its Price-To-Earnings Ratio (13.2x) compared to the peer average (8.9x).


Price to Earnings Ratio vs Industry

How does RKFORGE's PE Ratio compare vs other companies in the IN Metals and Mining Industry?

Price-To-Earnings vs Industry: RKFORGE is expensive based on its Price-To-Earnings Ratio (13.2x) compared to the Indian Metals and Mining industry average (12.4x)


Price to Earnings Ratio vs Fair Ratio

What is RKFORGE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RKFORGE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RKFORGE's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of RKFORGE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RKFORGE (₹163.85) is trading above our estimate of fair value (₹8.53)

Significantly Below Fair Value: RKFORGE is trading above our estimate of fair value.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RKFORGE's PEG Ratio to determine if it is good value.


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Future Growth

How is Ramkrishna Forgings forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-13.1%

Forecasted Materials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ramkrishna Forgings has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


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Past Performance

How has Ramkrishna Forgings performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RKFORGE has high quality earnings.

Growing Profit Margin: RKFORGE's current net profit margins (8.5%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: RKFORGE's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: RKFORGE's earnings growth over the past year (858.1%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: RKFORGE earnings growth over the past year (858.1%) exceeded the Metals and Mining industry 76.9%.


Return on Equity

High ROE: RKFORGE's Return on Equity (18.4%) is considered low.


Discover strong past performing companies

Financial Health

How is Ramkrishna Forgings's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RKFORGE's short term assets (₹18.1B) exceed its short term liabilities (₹14.2B).

Long Term Liabilities: RKFORGE's short term assets (₹18.1B) exceed its long term liabilities (₹9.8B).


Debt to Equity History and Analysis

Debt Level: RKFORGE's net debt to equity ratio (138.9%) is considered high.

Reducing Debt: RKFORGE's debt to equity ratio has reduced from 203.9% to 147.5% over the past 5 years.

Debt Coverage: RKFORGE's debt is not well covered by operating cash flow (2.7%).

Interest Coverage: RKFORGE's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


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Dividend

What is Ramkrishna Forgings's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


0.49%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RKFORGE's dividend (0.49%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: RKFORGE's dividend (0.49%) is low compared to the top 25% of dividend payers in the Indian market (1.85%).


Stability and Growth of Payments

Stable Dividend: RKFORGE's dividend payments have been volatile in the past 10 years.

Growing Dividend: RKFORGE's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (4%), RKFORGE's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: RKFORGE is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

9.9yrs

Average management tenure


CEO

Naresh Jalan (46 yo)

15.58yrs

Tenure

₹17,865,000

Compensation

Mr. Naresh Jalan has been Managing Director of Ramkrishna Forgings Limited since November 5, 2006 and serves as its Executive Director. He has done MBA.


CEO Compensation Analysis

Compensation vs Market: Naresh's total compensation ($USD226.12K) is about average for companies of similar size in the Indian market ($USD260.10K).

Compensation vs Earnings: Naresh's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RKFORGE's management team is seasoned and experienced (9.9 years average tenure).


Board Members

Experienced Board: RKFORGE's board of directors are considered experienced (9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ramkrishna Forgings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ramkrishna Forgings Limited
  • Ticker: RKFORGE
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Steel
  • Sector: Materials
  • Implied Market Cap: ₹26.161b
  • Shares outstanding: 160.01m
  • Website: https://www.ramkrishnaforgings.com

Number of Employees


Location

  • Ramkrishna Forgings Limited
  • Ramkrishna Chambers
  • 23, Circus Avenue
  • Kolkata
  • West Bengal
  • 700017
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.