High Scoring Large Cap stocks have outperformed low scoring stocks by 90% over last 4 years
Technicals: Bullish SharesGuru indicator.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Past Returns: In past three years, the stock has provided 16% return compared to 8.9% by NIFTY 50.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Momentum: Stock has a weak negative price momentum.
Valuation | |
|---|---|
| Market Cap | 10.08 kCr |
| Price/Earnings (Trailing) | 140.16 |
| Price/Sales (Trailing) | 2.37 |
| EV/EBITDA | 19.34 |
| Price/Free Cashflow | -120.14 |
| MarketCap/EBT | 111.6 |
| Enterprise Value | 12.26 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 4.25 kCr |
| Rev. Growth (Yr) | 27.1% |
| Earnings (TTM) | 71.8 Cr |
| Earnings Growth (Yr) | -72% |
Profitability | |
|---|---|
| Operating Margin | 3% |
| EBT Margin | 2% |
| Return on Equity | 2.18% |
| Return on Assets | 1% |
| Free Cashflow Yield | -0.83% |
Growth & Returns | |
|---|---|
| Price Change 1W | -3.3% |
| Price Change 1M | -0.30% |
| Price Change 6M | 3.8% |
| Price Change 1Y | -9.8% |
| 3Y Cumulative Return | 16% |
| 5Y Cumulative Return | 34.6% |
| 7Y Cumulative Return | 27.8% |
| 10Y Cumulative Return | 22.3% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -928.59 Cr |
| Cash Flow from Operations (TTM) | 839.75 Cr |
| Cash Flow from Financing (TTM) | 235.04 Cr |
| Cash & Equivalents | 162.23 Cr |
| Free Cash Flow (TTM) | -83.93 Cr |
| Free Cash Flow/Share (TTM) | -4.62 |
Balance Sheet | |
|---|---|
| Total Assets | 7.18 kCr |
| Total Liabilities | 3.89 kCr |
| Shareholder Equity | 3.29 kCr |
| Current Assets | 2.45 kCr |
| Current Liabilities | 2.13 kCr |
| Net PPE | 3.44 kCr |
| Inventory | 1.25 kCr |
| Goodwill | 70.67 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.33 |
| Debt/Equity | 0.71 |
| Interest Coverage | -0.57 |
| Interest/Cashflow Ops | 4.99 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 1 |
| Dividend Yield | 0.18% |
| Shares Dilution (1Y) | 0.40% |
| Shares Dilution (3Y) | 13.6% |
Technicals: Bullish SharesGuru indicator.
Size: Market Cap wise it is among the top 20% companies of india.
Balance Sheet: Strong Balance Sheet.
Past Returns: In past three years, the stock has provided 16% return compared to 8.9% by NIFTY 50.
Smart Money: Smart money is taking extra interest in the stock as they increase their holdings.
Momentum: Stock has a weak negative price momentum.
Investor Care | |
|---|---|
| Dividend Yield | 0.18% |
| Dividend/Share (TTM) | 1 |
| Shares Dilution (1Y) | 0.40% |
| Earnings/Share (TTM) | 3.96 |
Financial Health | |
|---|---|
| Current Ratio | 1.15 |
| Debt/Equity | 0.71 |
Technical Indicators | |
|---|---|
| RSI (14d) | 37.5 |
| RSI (5d) | 30.72 |
| RSI (21d) | 52.99 |
| MACD Signal | Sell |
| Stochastic Oscillator Signal | Buy |
| SharesGuru Signal | Buy |
| RSI Signal | Hold |
| RSI5 Signal | Hold |
| RSI21 Signal | Hold |
| SMA 5 Signal | Sell |
| SMA 10 Signal | Sell |
| SMA 20 Signal | Sell |
| SMA 50 Signal | Buy |
| SMA 100 Signal | Buy |
Summary of ramkrishna forgings's latest earnings call, featuring management's outlook on business performance, financial results, and analyst Q&A sessions that highlight key strategic initiatives and market challenges.
In the earnings call for Q4 FY26, management provided an optimistic outlook, emphasizing their confidence in maintaining growth momentum in FY27 following a strong performance in Q4. They reported consolidated revenues of Rs. 1,216.78 crores for the quarter, reflecting a 28% year-on-year increase, and Rs. 4,238 crores for the full year, marking a 5% increase compared to FY25. EBITDA for Q4 stood at Rs. 208.19 crores, up 111% year-on-year, with a margin improvement to 17.1%. Despite challenges in the global macroeconomic environment, the domestic market showed resilience, with the company benefiting from growth in the automotive and railway sectors.
Key forward-looking points mentioned include:
Order Book Growth: Management reported securing new orders worth Rs. 594 crores for a program life of four years, with 56% stemming from the automotive sector and 44% from non-automotive, indicating a diversification strategy.
Rail Wheel Joint Venture: The company aims to commence rail wheel production in Q1 FY27, expecting to supply approximately 40,000 wheels to Indian Railways with a projected revenue addition of Rs. 400-450 crores.
Casting Utilization: Management anticipates reaching 85%-90% utilization in their casting facilities, potentially contributing Rs. 400-500 crores in revenue over the financial year.
Debt Reduction: A significant effort towards debt reduction is planned, targeting a decrease of Rs. 400-500 crores during FY27.
Expansion in Passenger Vehicle Segment: The company projects to secure 10% of its revenue from passenger vehicles in the upcoming two years, reflecting a commitment to expanding its presence in the EV market.
Positive Outlook for Exports: Management expressed confidence in the North American market for Class 8 trucks, anticipating sustained demand in the next two years.
Overall, management's outlook indicates strategic growth initiatives and a recovery trajectory in multiple business segments, positioning the company for continued success in FY27.
1. Question: How is the demand shaping in the US market, particularly for Class 8 volumes?
Answer: Class 8 trucks are currently strong. Over the past three months, we've observed destocking in our North American warehouses. We're anticipating significant fresh revenue from Class 8 trucks starting this quarter going forward, and I expect this demand to remain robust for at least the next two years, lasting until the third quarter of calendar year '27.
2. Question: Regarding the wheel set plant, have we submitted the 300 trial wheels for approval, and what kind of run rate can we expect?
Answer: We plan to submit the 300 wheels by June or July. We will begin manufacturing by the end of May or June, so commercial production will start immediately after. We are targeting to supply nearly 40,000 wheels in FY '27 to Indian Railways, with delivery in the coming financial year.
3. Question: Can you clarify the Rs. 1,550 crores of new orders for FY '27? Does this include castings?
Answer: Yes, the Rs. 1,550 crores refers to consolidated orders, which includes both forgings and castings. We anticipate significant capacity utilization in casting, aiming for 85% to 90% over the course of FY '27, which will contribute to our revenue growth.
4. Question: What EBITDA margin can we expect in FY '27?
Answer: We are optimistic about our EBITDA margins for FY '27. Given the improvements we've made, I expect we can achieve margins that are 100 to 150 basis points higher than what's reported in Q4. The margins depend on our ability to pass on energy price increases.
5. Question: What kind of cash flow and capex are we looking at in FY '27?
Answer: We anticipate a significant reduction in debt by Rs. 400 to Rs. 500 crores this year, primarily funded by promoter contributions and strong business performance. We expect our capex to be around Rs. 300 to Rs. 400 crores, mostly directed towards maintenance and value-adding initiatives.
6. Question: How do we see capacity utilization moving forward?
Answer: We expect to reach around 80% to 85% utilization by the end of FY '27. This is contingent on order book growth and the current geopolitical situation, which may present risks but also opportunities for increasing production numbers.
7. Question: How have international shipping costs and timelines affected your operations?
Answer: Shipping costs have increased by 15% to 20%, with delays extending delivery times by 15 to 20 days. However, our floating inventory remains manageable, and we are aligned with shipping timelines.
8. Question: Can you expand on your plans for aluminum and titanium alloys in the aerospace sector?
Answer: We're actively exploring opportunities to manufacture titanium and stainless-steel products for aerospace. While it can take 12 to 24 months for these initiatives to materialize into revenues, we expect to see our order book begin to reflect this growth within the financial year.
These summaries encapsulate major points from the Q&A section of the transcript while adhering to the specified constraints.
Analysis of ramkrishna forgings's financial performance, highlighting revenue trends, growth patterns, and key metrics through quarterly analysis.
Last Updated: Dec 31, 2024
| Description | Share | Value |
|---|---|---|
| Forging Components | 100.0% | 1.1 kCr |
| Total | 1.1 kCr |
Understand ramkrishna forgings ownership landscape with insights into key distribution patterns, offering investors a clear view of stakeholder dynamics.
| Shareholder Name | Holding % |
|---|---|
| RIDDHI PORTFOLIO PRIVATE LTD | 34.65% |
| SMALLCAP WORLD FUND, INC | 7.97% |
| MAA CHANDI FINANCIAL ADVISORY SERVICES PRIVATE LIMITED | 3.58% |
| LATA BHANSHALI | 2.9% |
| AKASH BHANSHALI | 2.23% |
| CHAITANYA JALAN | 1.68% |
| BLUE DAIMOND PROPERTIES PVT LTD | 1.58% |
| NARESH JALAN | 1.52% |
| BLUE LOTUS INVESTMENT FUND | 1.38% |
| MASSACHUSETTS INSTITUTE OF TECHNOLOGY | 1.27% |
| BNP PARIBAS FINANCIAL MARKETS - ODI | 1.24% |
| PAYAL BHANSHALI | 1.19% |
| RASHMI JALAN | 1.15% |
| MORGAN STANLEY ASIA (SINGAPORE) PTE. - ODI | 1.06% |
| COHESION MK BEST IDEAS SUB-TRUST | 1.06% |
| AADI FINANCIAL ADVISORS LLP | 1.03% |
| NARESH JALAN HUF | 0.74% |
| RADHIKA JALAN | 0.01% |
| MAHABIR PRASAD JALAN | 0% |
| MAHABIR PRASAD JALAN HUF | 0% |
Distribution across major stakeholders
Distribution across major institutional holders
Detailed comparison of ramkrishna forgings against industry peers, highlighting key financial metrics, valuation ratios, and performance indicators to provide competitive context within the sector.
Ticker | Name | Mkt Cap | Revenue | Price %, 1M | Returns, 1Y | P/E | P/S | Rev 1-Yr | Inc 1-Yr |
|---|---|---|---|---|---|---|---|---|---|
| BHARATFORG | Bharat Forge | 90.73 kCr | 17.01 kCr | -0.30% | +53.10% | 84.04 | 5.33 | - | - |
| MMFL | M.M.Forgings | 2.18 kCr | 1.55 kCr | -4.00% | +23.90% | 25.19 | 1.41 | - | - |
Comprehensive comparison against sector averages
RKFORGE metrics compared to Auto
| Category | RKFORGE | Auto |
|---|---|---|
| PE | 142.98 | 38.95 |
| PS | 2.42 | 2.24 |
| Growth | 3.5 % | 12.9 % |
Ramkrishna Forgings Limited engages in the manufacture and sale of forged components for automobiles, railway wagons and coaches, and engineering parts in India and internationally. It operates in two segments, Forging Components and Others. The company's products portfolio includes beam, knuckle, steering arm, tie-rod-arm, sector shaft, front hub, crankshaft, camshaft, connecting rod, piston, pitman arm, BC lever assembly, mounting bracket, yoke, UJ cross, transmission gear and shaft, crown wheel, pinion, differential case and case cover, differential gear and pinion, spindle, rear axle shaft, spider, helical gear, tube flange and shaft, and tube yoke products. It also offers bucket, backhoe bucket, shovel, track line and roller, bucket tooth, pivot pin, prop shaft, and bearing centre products; and wing nut, valve bonet, T-bolt socket joint, and tooth crusher hammer products. In addition, the company provides bogie frame and bolster, screw coupling, hanger, draw gear assembly, anti roll bar assembly, control arm support, center pivot pin, centering disc, traction center, and guide products. Further, it offers tractor-trailer products, such as trailer axle, air and mechanical suspension, landing leg, and bolton and weldable king pin products; as well as engages in the sanitization and cargo, and tour and travel businesses. The company offers its products for various industries and sectors, including automotive, earth moving and mining, farm equipment, power, construction, general engineering, railways, steel plants, and oil and gas exploration, as well as for original equipment manufacturers. Ramkrishna Forgings Limited was incorporated in 1981 and is headquartered in Kolkata, India.
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RKFORGE vs Auto (2021 - 2026)