Ramkrishna Forgings Ltd (RKFORGE) AI Stock Analysis

• Market Cap: ₹105.62B
• Dividend Yield: 0.35%
• Average Volume (3M): 34.18K
• Price to Earnings (P/E): 25.1
• Beta (1Y): 1.54
• Revenue Growth: 0.55%
• EPS Growth: 17.27%
• Country: IN
• Employees: 2,554
• Sector: Industrials
• Sector Strength: 84
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 1.20
• Shares Outstanding: 181,030,610
• 10 Day Avg. Volume: 34,456
• 30 Day Avg. Volume: 34,183
• PEG Ratio: 3.31
• 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: ₹568.00
• Price Target Upside: -2.30% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: ₹568.00 ▼(-2.30% Downside)

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 and machined components for various sectors, including automotive, railways, defense, and general engineering. The company specializes in producing a wide range of forged products such as crankshafts, connecting rods, front axle beams, and other critical components that are essential for machinery and vehicles. With a focus on quality and precision engineering, Ramkrishna Forgings serves a diverse client base across domestic and international markets.

How the Company Makes Money

Ramkrishna Forgings Ltd generates revenue through the production and sale of forged and machined components, primarily catering to the automotive industry, which constitutes a significant portion of its earnings. The company has a diversified product portfolio that includes components for commercial vehicles, passenger vehicles, and industrial machinery. RKFORGE leverages its robust manufacturing capabilities and state-of-the-art facilities to meet the high standards required by its clients. Additionally, the company has established strategic partnerships and long-term agreements with key players in the automotive and engineering sectors, ensuring a steady stream of orders and revenue. Export sales also contribute to the company's revenue, with products being supplied to various international markets.

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 2023	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.56B	40.34B	31.93B	39.55B	20.74B	11.75B
Gross Profit	16.98B	12.68B	13.94B	16.88B	6.40B	3.71B
EBITDA	9.23B	5.86B	6.98B	8.18B	5.20B	2.29B
Net Income	4.64B	3.20B	2.48B	3.41B	1.98B	206.68M
Balance Sheet
Total Assets	0.00	65.57B	37.30B	53.08B	34.84B	27.04B
Cash, Cash Equivalents and Short-Term Investments	811.78M	290.49M	555.92M	2.28B	1.21B	751.72M
Total Debt	0.00	21.26B	13.33B	12.07B	16.33B	12.33B
Total Liabilities	-29.42B	35.20B	24.09B	26.24B	24.05B	18.22B
Stockholders Equity	29.42B	30.37B	13.22B	26.84B	10.78B	8.83B
Cash Flow
Free Cash Flow	0.00	-11.06B	3.89B	319.24M	-2.57B	-913.55M
Operating Cash Flow	0.00	-1.29B	7.45B	6.21B	430.57M	1.40B
Investing Cash Flow	0.00	-9.14B	-2.99B	-11.17B	-3.54B	-2.22B
Financing Cash Flow	0.00	8.86B	-4.38B	6.25B	2.80B	1.47B

Ramkrishna Forgings Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 581.35
• 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 581.35 is below the 20-day moving average (MA) of 600.41, below the 50-day MA of 633.62, and below the 200-day MA of 750.35, indicating a bearish trend. The MACD of -18.37 indicates Positive momentum. The RSI at 36.62 is Neutral, neither overbought nor oversold. The STOCH value of 55.24 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
JASH	71 Outperform	₹32.11B	39.14		0.16%	32.20%	11.50%
SONACOMS	70 Outperform	₹273.50B	46.31		0.71%	5.20%	1.76%
PENIND	68 Neutral	₹29.26B	24.52		―	3.07%	21.34%
MMFL	67 Neutral	₹14.68B	13.24		1.34%	-4.47%	-17.62%
Sector *	66 Neutral	£2.67B	13.00	3.30%	3.25%	2.35%	-22.12%
JTEKTINDIA	60 Neutral	₹34.69B	43.20		0.56%	6.85%	-28.21%
RKFORGE	51 Neutral	₹105.62B	25.09		0.35%	0.55%	17.27%

Ramkrishna Forgings Ltd Corporate Events

Ramkrishna Forgings Schedules Urgent Call on Inventory Discrepancies

Ramkrishna Forgings Limited has announced an urgent investor and analyst conference call to discuss the findings of a recent Audit Committee meeting. The meeting addressed discrepancies in inventory, and the company has appointed independent external agencies to conduct a fact-finding study. This move indicates the company’s proactive approach to transparency and accountability, which may impact its market reputation and stakeholder trust.