Ramkrishna Forgings Ltd (RKFORGE) AI Stock Analysis

• Market Cap: ₹90.71B
• Dividend Yield: 0.38%
• Average Volume (3M): 32.58K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.67
• Revenue Growth: -4.73%
• EPS Growth: -19.52%
• Country: IN
• Employees: 2,554
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 0.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹507.00 ▲(2.07% Upside)

Ramkrishna Forgings Ltd faces significant challenges with cash flow issues and bearish technical indicators. While the company has shown strong revenue growth and profitability, the high P/E ratio and low dividend yield limit its attractiveness. Addressing cash flow and operational efficiency is crucial for sustaining growth.

Positive Factors

Strong Revenue Growth

Consistent revenue growth indicates robust demand for RKFORGE's products, reflecting its competitive positioning in the automotive and rail sectors.

Efficient Production Processes

High gross profit margins suggest efficient production processes, which can sustain profitability even during challenging market conditions.

Moderate Leverage

Moderate leverage provides financial flexibility, allowing RKFORGE to invest in growth opportunities without overburdening the balance sheet.

Negative Factors

Cash Flow Issues

Persistent cash flow issues can hinder RKFORGE's ability to fund operations and growth, posing a risk to long-term financial health.

Decline in EBIT Margin

A declining EBIT margin indicates potential challenges in operational efficiency, which could impact profitability if not addressed.

Revenue Growth Rate Decline

A slowdown in revenue growth rate may signal market saturation or increased competition, affecting future growth prospects.

Ramkrishna Forgings Ltd Business Overview & Revenue Model

Company Description

Ramkrishna Forgings Ltd (RKFORGE) is a leading manufacturer of forged and machined components, primarily serving the automotive, railways, and industrial sectors. Established with a strong focus on quality and innovation, RKFORGE specializes in producing a wide range of products including crankshafts, connecting rods, and other critical components that cater to both domestic and international markets. The company is committed to leveraging advanced technology and sustainable practices in its manufacturing processes.

How the Company Makes Money

RKFORGE generates revenue through the sale of its forged and machined products, which are primarily supplied to original equipment manufacturers (OEMs) in the automotive and railway sectors. Key revenue streams include contracts for bulk orders of components, which are often long-term agreements with major automotive companies and railway operators. Additionally, RKFORGE benefits from partnerships with technology providers to enhance its manufacturing capabilities and efficiency, thereby reducing costs and increasing profit margins. The company also explores export markets, which contribute to its overall revenue by tapping into the growing demand for high-quality forged components globally.

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: 496.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 496.7 is below the 20-day moving average (MA) of 511.68, below the 50-day MA of 526.74, and below the 200-day MA of 596.29, indicating a bearish trend. The MACD of -3.24 indicates Negative momentum. The RSI at 42.02 is Neutral, neither overbought nor oversold. The STOCH value of 18.20 is Positive, 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
SONACOMS	74 Outperform	₹285.96B	46.66	―	0.65%	7.34%	2.27%
MMFL	72 Outperform	₹19.37B	17.47	―	1.07%	-4.47%	-17.62%
JASH	65 Neutral	₹25.78B	33.26	―	0.47%	25.52%	-4.18%
JTEKTINDIA	65 Neutral	₹41.71B	56.33	―	0.49%	4.44%	-25.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
PENIND	63 Neutral	₹26.20B	20.12	―	―	14.73%	21.44%
RKFORGE	54 Neutral	₹90.71B	30.02	―	0.38%	-4.73%	-19.52%

Ramkrishna Forgings Ltd Corporate Events

Ramkrishna Forgings Reports No Physical Share Re-lodgement Requests in November 2025

Ramkrishna Forgings Limited has notified the stock exchanges that, in line with a Securities and Exchange Board of India (SEBI) circular on re-lodgement of transfer requests for physical shares, it has received a report from its registrar and transfer agent, Kfin Technologies, for the month ended 30 November 2025. The report confirms that there were no shareholder requests for re-lodgement of transfer of physical shares under the special SEBI window during the month, indicating no pending or processed cases in this category and suggesting administrative stability in the company’s share transfer and dematerialisation processes.

CRISIL Removes Watch, Reaffirms Ramkrishna Forgings at ‘AA-/Negative’ and ‘A1+’ Amid Export Headwinds

Ramkrishna Forgings Limited has had its long-term rating reaffirmed at ‘CRISIL AA-/Negative’ and short-term rating at ‘CRISIL A1+’, with both removed from watch, covering Rs 1,650 crore of bank facilities and Rs 300 crore of commercial paper. CRISIL’s action follows management’s corrective measures to tighten internal controls over inventory reporting, completion of an external fact-finding review that found no further discrepancies beyond those booked in fiscal 2025, and a planned promoter-backed compensation of Rs 204.75 crore via convertible warrants, part of which has already been infused. However, the negative outlook reflects weaker-than-expected operating efficiency and capital structure amid a slowdown in the commercial vehicle industry, lower export contribution due to US customs duties, and potential demand and margin risks from new Mexican duties on Indian exports, all of which remain key monitorables for the company and its lenders.

Ramkrishna Forgings Conducts Virtual Extraordinary General Meeting

Ramkrishna Forgings Limited held an Extraordinary General Meeting on December 12, 2025, conducted via video conferencing in compliance with regulatory guidelines. The meeting, attended by 55 members, was chaired initially by Managing Director Naresh Jalan, who later handed over proceedings to Lalit Kumar Khetan due to a conflict of interest. The meeting ensured the participation of board members and followed the necessary protocols for virtual attendance, reflecting the company’s adherence to governance and regulatory standards.

Ramkrishna Forgings Releases Q2 & H1 FY 2025-26 Earnings Call Recording

Ramkrishna Forgings Ltd has announced the availability of an audio recording for their Q2 and H1 FY 2025-26 earnings conference call. This disclosure, made in compliance with SEBI regulations, allows analysts and investors to access the company’s financial performance and strategic insights, potentially impacting stakeholder decisions and market perception.