Ramkrishna Forgings Ltd (IN:RKFORGE)
:RKFORGE
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Ramkrishna Forgings Ltd
(RKFORGE)
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Rating:54Neutral
Price Target:
₹544.00
▲(9.52% Upside)
Action:ReiteratedDate:12/18/25
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
High gross profit margin (efficient production)
A sustained 43.74% gross margin signals durable manufacturing efficiency and cost control in core forging operations. This structural advantage supports competitiveness on bid pricing, cushions raw-material swings, and enables reinvestment into value-add machining and quality controls that preserve long-term margins.
Negative Factors
Negative operating and free cash flow
Negative operating and free cash flows despite reported profits indicate weak cash conversion from operations. This structural liquidity shortfall can constrain capex, delay modernization, increase reliance on external financing, and reduce resilience during demand downturns, impairing long-term growth execution.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross profit margin (efficient production)
A sustained 43.74% gross margin signals durable manufacturing efficiency and cost control in core forging operations. This structural advantage supports competitiveness on bid pricing, cushions raw-material swings, and enables reinvestment into value-add machining and quality controls that preserve long-term margins.
Read all positive factors
Ramkrishna Forgings Ltd (RKFORGE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹83.95B
Dividend Yield0.38%
Average Volume (3M)32.58K
Price to Earnings (P/E)174.3
Beta (1Y)1.26
Revenue Growth-4.73%
EPS Growth-19.52%
CountryIN
Employees2,554
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)1.05
Shares Outstanding181,030,610
10 Day Avg. Volume29,722
30 Day Avg. Volume32,581
Financial Highlights & Ratios
PEG Ratio3.68
Price to Book (P/B)4.61
Price to Sales (P/S)3.47
P/FCF Ratio-12.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)13.4
Revenue Forecast (FY)₹35.59B
Ramkrishna Forgings Ltd Business Overview & Revenue Model
Company Description
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 comp...
How the Company Makes Money
RKFORGE makes money by manufacturing and selling forged (and value-added machined) components to original equipment manufacturers (OEMs) and tiered component suppliers. Its primary revenue stream is product sales: customers place orders for specif...
Ramkrishna Forgings Ltd Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
65
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 39.44B | 40.34B | 37.05B | 31.93B | 23.20B | 12.89B |
| Gross Profit | 16.01B | 17.64B | 15.92B | 13.75B | 9.90B | 5.44B |
| EBITDA | 3.67B | 5.39B | 7.64B | 6.98B | 5.16B | 2.23B |
| Net Income | 1.47B | 4.15B | 2.91B | 2.48B | 1.98B | 206.68M |
Balance Sheet | ||||||
| Total Assets | 68.87B | 65.57B | 53.08B | 37.30B | 34.84B | 27.04B |
| Cash, Cash Equivalents and Short-Term Investments | 753.58M | 290.49M | 2.28B | 555.92M | 1.21B | 710.82M |
| Total Debt | 27.22B | 21.26B | 12.07B | 13.33B | 16.33B | 12.33B |
| Total Liabilities | 38.19B | 35.20B | 26.24B | 24.09B | 24.05B | 18.22B |
| Stockholders Equity | 30.68B | 30.37B | 26.84B | 13.22B | 10.78B | 8.83B |
Cash Flow | ||||||
| Free Cash Flow | -4.90B | -11.06B | 319.24M | 3.89B | -2.57B | -913.55M |
| Operating Cash Flow | -53.92M | -1.29B | 6.21B | 7.45B | 430.57M | 1.40B |
| Investing Cash Flow | -4.82B | -9.14B | -11.17B | -2.99B | -3.54B | -2.22B |
| Financing Cash Flow | 5.08B | 8.86B | 6.25B | -4.38B | 2.80B | 1.47B |
Ramkrishna Forgings Ltd Technical Analysis
Negative
496.70
Price Trends
535.69
Negative
531.65
Negative
564.44
Negative
Market Momentum
-13.63
Positive
32.62
Neutral
8.68
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 539.20, below the 50-day MA of 535.69, and below the 200-day MA of 564.44, indicating a bearish trend. The MACD of -13.63 indicates Positive momentum. The RSI at 32.62 is Neutral, neither overbought nor oversold. The STOCH value of 8.68 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹307.22B | 49.42 | ― | 0.65% | 7.34% | 2.27% | |
72 Outperform | ₹20.08B | 24.91 | ― | 1.07% | -4.47% | -17.62% | |
65 Neutral | ₹21.89B | 51.58 | ― | 0.47% | 25.52% | -4.18% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ₹34.17B | 48.24 | ― | 0.49% | 4.44% | -25.67% | |
61 Neutral | ₹19.22B | 20.56 | ― | ― | 14.73% | 21.44% | |
54 Neutral | ₹83.95B | 174.30 | ― | 0.38% | -4.73% | -19.52% |
* Industrials Sector Average
IN:RKFORGE
Ramkrishna Forgings Ltd
481.65
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-40.25%
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Ramkrishna Forgings Ltd Corporate Events
Ramkrishna Forgings Posts Q3 and 9M FY26 Earnings Call Audio on Website
Jan 27, 2026
Ramkrishna Forgings Limited has notified the stock exchanges that the audio recording of its Q3 and nine-month FY 2025-26 earnings conference call with analysts and investors, held digitally on 27 January 2026, has been made available on the compa...
Ramkrishna Forgings Files SEBI Compliance Certificate on Demat Activity for Q3 FY2025
Jan 9, 2026
Ramkrishna Forgings Limited has submitted to the stock exchanges a certificate from its registrar and transfer agent, KFin Technologies Limited, confirming compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.