Ramkrishna Forgings Ltd (RKFORGE) AI Stock Analysis

• Market Cap: ₹96.68B
• Dividend Yield: 0.38%
• Average Volume (3M): 32.58K
• Price to Earnings (P/E): 23.0
• Beta (1Y): 1.52
• Revenue Growth: 0.55%
• EPS Growth: 17.34%
• Country: IN
• Employees: 2,554
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.20
• Shares Outstanding: 181,030,610
• 10 Day Avg. Volume: 29,722
• 30 Day Avg. Volume: 32,581
• PEG Ratio: 3.68
• Price to Book (P/B): 4.61
• Price to Sales (P/S): 3.47
• P/FCF Ratio: -12.67
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ₹568.00 ▲(6.82% Upside)

The overall stock score reflects strong revenue growth and stable profitability, offset by declining operational efficiency, high leverage, and negative cash flow. Bearish technical indicators further weigh on the score, while moderate valuation provides some support.

Ramkrishna Forgings Ltd Business Overview & Revenue Model

Company Description

Ramkrishna Forgings Ltd (RKFORGE) is a leading manufacturer and supplier of forged components, primarily serving sectors such as automotive, railways, and construction. The company specializes in producing high-quality forged products, including axles, gears, and various other components that are essential for machinery and vehicle assembly. With a focus on innovation and quality, RKFORGE aims to enhance manufacturing efficiency and meet the diverse needs of its clientele across multiple industries.

How the Company Makes Money

RKFORGE generates revenue primarily through the sale of its forged components to various industries, notably automotive and railways. Key revenue streams include direct sales of forged products and long-term contracts with major manufacturers, which provide a stable income base. The company also benefits from strategic partnerships with leading firms in the automotive sector, enhancing its market reach and operational capabilities. Additionally, RKFORGE invests in research and development to innovate its product offerings, allowing it to capture emerging market opportunities and adapt to evolving customer demands, which further contributes to its revenue growth.

Ramkrishna Forgings Ltd Financial Statement Overview

Summary

Ramkrishna Forgings Ltd shows strong revenue growth and stable profitability. However, operational efficiency has declined, with EBIT margin falling sharply. High leverage and negative free cash flow pose risks, though the equity base is solid.

Income Statement

Ramkrishna Forgings Ltd has shown consistent revenue growth over the years, with a notable increase of 21.3% from 2022 to 2023. Although gross profit margin has declined recently, the company maintains a healthy net profit margin of 7.9% in 2025. However, a sharp decline in EBIT margin from 36.9% in 2024 to 7.1% in 2025 highlights potential operational inefficiencies or increased costs. EBITDA margin remains strong, indicating robust core operations.

Balance Sheet

The debt-to-equity ratio reflects a high leverage position, with a ratio of 0.70 in 2025, indicating potential risk if earnings fluctuate. Return on equity has decreased to 10.5% in 2025 from a high of 12.7% in 2024, yet it remains reasonable within the industry. The equity ratio indicates a solid capital structure, though the high level of liabilities could pose a risk in less favorable economic conditions.

Cash Flow

Free cash flow has turned negative in 2025, raising concerns about the company's ability to finance its operations without additional debt or equity. The operating cash flow to net income ratio is also unfavorably positioned at -0.40, indicating challenges in converting income into cash. Despite this, the company has managed significant capital expenditures, which could drive future growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	40.90B	40.34B	37.05B	31.93B	23.20B	12.89B
Gross Profit	17.22B	17.64B	15.92B	13.75B	9.90B	5.44B
EBITDA	4.77B	5.39B	7.64B	6.98B	5.16B	2.23B
Net Income	3.46B	4.15B	2.91B	2.48B	1.98B	206.68M
Balance Sheet
Total Assets	0.00	65.57B	53.08B	37.30B	34.84B	27.04B
Cash, Cash Equivalents and Short-Term Investments	290.49M	290.49M	2.28B	555.92M	1.21B	710.82M
Total Debt	0.00	21.26B	12.07B	13.33B	16.33B	12.33B
Total Liabilities	-30.37B	35.20B	26.24B	24.09B	24.05B	18.22B
Stockholders Equity	30.37B	30.37B	26.84B	13.22B	10.78B	8.83B
Cash Flow
Free Cash Flow	0.00	-11.06B	319.24M	3.89B	-2.57B	-913.55M
Operating Cash Flow	0.00	-1.29B	6.21B	7.45B	430.57M	1.40B
Investing Cash Flow	0.00	-9.14B	-11.17B	-2.99B	-3.54B	-2.22B
Financing Cash Flow	0.00	8.86B	6.25B	-4.38B	2.80B	1.47B

Ramkrishna Forgings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 531.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RKFORGE, the sentiment is Negative. The current price of 531.75 is below the 20-day moving average (MA) of 544.86, below the 50-day MA of 555.94, and below the 200-day MA of 643.21, indicating a bearish trend. The MACD of -5.77 indicates Positive momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 21.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RKFORGE.

Ramkrishna Forgings Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PENIND	72 Outperform	₹37.28B	29.87	―	―	7.18%	21.26%
SONACOMS	70 Outperform	₹300.66B	49.06	―	0.65%	7.34%	2.27%
MMFL	68 Neutral	₹14.93B	13.46	―	1.33%	-4.47%	-17.62%
JASH	65 Neutral	₹29.88B	36.32	―	0.44%	32.20%	11.82%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
JTEKTINDIA	62 Neutral	₹44.65B	58.77	―	0.43%	3.94%	-30.18%
RKFORGE	51 Neutral	₹96.68B	22.95	―	0.38%	0.55%	17.34%

Ramkrishna Forgings Ltd Corporate Events

Ramkrishna Forgings Convenes 43rd AGM with Focus on Governance

Ramkrishna Forgings Limited held its 43rd Annual General Meeting on September 20, 2025, through video conferencing, in compliance with regulatory guidelines. The meeting, attended by 70 members, was chaired by Managing Director Naresh Jalan, and covered various corporate governance aspects, including the presence of key committee chairpersons and auditors. The meeting ensured transparency and adherence to SEBI regulations, reflecting the company’s commitment to maintaining robust corporate governance practices.

Ramkrishna Forgings to Hold 43rd AGM via Video Conferencing

Ramkrishna Forgings Limited announced the scheduling of its 43rd Annual General Meeting (AGM) to be held on September 20, 2025, via video conferencing. This move aligns with regulatory compliance and ensures shareholder participation through digital means, reflecting the company’s adaptation to modern communication methods.

Ramkrishna Forgings Releases Q1 FY 2025-26 Earnings Call Transcript

Ramkrishna Forgings Limited has released the transcript of its Q1 FY 2025-26 earnings conference call, which was held with analysts and investors. This disclosure is part of the company’s compliance with regulatory requirements and provides insights into its financial performance for the quarter. The transcript is available on the company’s website, offering stakeholders detailed information on the company’s operations and financial health.