Auto Components
Valuation | |
|---|---|
| Market Cap | 9.5 kCr |
| Price/Earnings (Trailing) | 31.48 |
| Price/Sales (Trailing) | 0.7 |
| EV/EBITDA | 4.42 |
| Price/Free Cashflow | -10.55 |
| MarketCap/EBT | 7.46 |
| Enterprise Value | 12.08 kCr |
Fundamentals | |
|---|---|
| Revenue (TTM) | 13.67 kCr |
| Rev. Growth (Yr) | -13.5% |
| Earnings (TTM) | 1.2 kCr |
| Earnings Growth (Yr) | -105% |
Profitability | |
|---|---|
| Operating Margin | 9% |
| EBT Margin | 9% |
| Return on Equity | 39.06% |
| Return on Assets | 17.4% |
| Free Cashflow Yield | -9.48% |
Growth & Returns | |
|---|---|
| Price Change 1W | -2.2% |
| Price Change 1M | -1.3% |
| Price Change 6M | -20.6% |
| Price Change 1Y | -45.8% |
| 3Y Cumulative Return | 31.1% |
| 5Y Cumulative Return | 40.6% |
| 7Y Cumulative Return | 26.2% |
| 10Y Cumulative Return | 17.7% |
Cash Flow & Liquidity | |
|---|---|
| Cash Flow from Investing (TTM) | -916.39 Cr |
| Cash Flow from Operations (TTM) | 32.55 Cr |
| Cash Flow from Financing (TTM) | 726.74 Cr |
| Cash & Equivalents | 37.12 Cr |
| Free Cash Flow (TTM) | -944.32 Cr |
| Free Cash Flow/Share (TTM) | -52.16 |
Balance Sheet | |
|---|---|
| Total Assets | 6.89 kCr |
| Total Liabilities | 3.82 kCr |
| Shareholder Equity | 3.07 kCr |
| Current Assets | 2.54 kCr |
| Current Liabilities | 2.41 kCr |
| Net PPE | 2.67 kCr |
| Inventory | 1.3 kCr |
| Goodwill | 70.67 Cr |
Capital Structure & Leverage | |
|---|---|
| Debt Ratio | 0.38 |
| Debt/Equity | 0.85 |
| Interest Coverage | 1.23 |
| Interest/Cashflow Ops | 1.06 |
Dividend & Shareholder Returns | |
|---|---|
| Dividend/Share (TTM) | 2 |
| Dividend Yield | 0.38% |
| Shares Dilution (1Y) | 0.10% |
| Shares Dilution (3Y) | 13.2% |
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.
Last updated:
Ramkrishna Forgings Limited, in its Q1 FY 2025-26 earnings call, outlined a cautious outlook due to ongoing challenges, particularly from geopolitical factors such as U.S. tariffs. The management reported consolidated revenues of Rs.1,015 Crores, a 6% year-on-year increase. However, EBITDA stood at Rs.149 Crores, a drop of Rs.20 Crores from the previous fiscal year, resulting in an EBITDA margin of 14.6%, down 300 basis points. Profit After Tax (PAT) decreased sharply to Rs.12 Crores from Rs.55 Crores in Q1 FY 2025, affected primarily by changes in export/domestic revenue mix and realization losses amounting to approximately Rs.40 Crores.
Management highlighted a proactive response to the evolving global landscape, noting that the U.S. auto tariffs of 25% would adversely influence demand in the short term, with estimations of resulting cash outflows around Rs.6 Crores. They expressed optimism about potential recovery in the commercial vehicle sector, despite a noted market downturn.
Forward-looking indicators include the addition of approximately 40,000 tonnes of press line capacity and a 3,000-tonne aluminum forging facility. In Q1, the company secured new orders totaling Rs.660 Crores, with export orders making up Rs.502 Crores. The mix of domestic orders was dominated by the off-highway segment (Rs.99 Crores) and commercial vehicles (Rs.59 Crores).
Management reaffirmed their commitment to improving margins, targeting a return to approximately 20-22% in EBITDA margins over the next few quarters, contingent upon stabilizing steel prices and improved operational efficiencies. The integration of new capabilities in aluminum forging is anticipated to support future growth, reflecting management's strategies to navigate market challenges while aiming for long-term profitability.
Last updated:
Q&A Summary from Ramkrishna Forgings Limited Earnings Transcript (Q1 FY '26)
1. Mitul Shah (DAM Capital): "In this quarter, how much impact, if someone has to gauge about that, we have to absorb the tariff before it gets negotiated or settled between us and OEM customer? What was the effective tariff rate we applied during the quarter on exports to North America?"
Naresh Jalan: For Quarter 1, the tariff for Light Vehicles and Passenger Vehicles was 25%, and for Commercial Vehicles, it was 10%. Our U.S. shipments faced a total impact of about Rs. 6 Crores, of which we've received confirmation for a 50% pass-on from customers. We're negotiating on the remaining Rs. 3 Crores.
2. Mitul Shah: "Is the Rs. 6 Crores impact captured in our P&L or only Rs. 3 Crores?"
Naresh Jalan: We haven't captured the impact in our P&L yet; we only recorded what customer confirmations we received, which means Rs. 0 currently reflects in our P&L.
3. Balasubramanian (Arihant Capital Markets): "What kind of contributions can we expect from the Mexico facility?"
Naresh Jalan: The Mexico operations are focusing on machining, with no immediate plans for forging. We started operations recently and expect significant revenue from FY '27 as capacity ramps up.
4. Dhaval Shah (Girik Capital): "What will be the impact of inventory correction on EBITDA margin?"
Lalit Khetan: There are no adjustments on account of inventory this quarter; all accounted for by March 2025. The decline in EBITDA margins to 14.6% was largely due to decreased realizations and overall market conditions.
5. Siddharth Bassi (Sass & B): "Will we stabilize at 21% to 22% margins in the next financial year?"
Naresh Jalan: Yes, we're aiming for a 22% EBITDA margin by Q4 FY '26 or Q1 FY '27. This assumes stabilization in our operations and back to our historical margins.
6. Viral Shah (Enam Holdings): "What are your expectations for net debt now and in the future?"
Naresh Jalan: Currently, our net debt stands at Rs. 1,800 Crores. We're targeting a reduction of Rs. 300 to Rs. 400 Crores by the end of FY '26, bringing it down to around Rs. 1,400 to Rs. 1,500 Crores.
7. Mitul Shah: "For the railway joint venture, what's the debt existing now?"
Lalit Khetan: The total investment in the JV, including debt, is about Rs. 1,270 Crores. The project financial structure is 70% debt and 30% equity, which means we expect to carry about Rs. 900 Crores in debt.
These represent the major questions and their detailed responses from the earnings call.
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 LIMITED | 33.45% |
| SMALLCAP WORLD FUND, INC | 7.54% |
| RAMKRISHNA RAIL AND INFRASTRUCTURE PRIVATE LIMITED | 3.59% |
| LATA BHANSHALI | 2.91% |
| NARESH JALAN | 2.49% |
| AKASH BHANSHALI | 2.24% |
| CHAITANYA JALAN | 1.68% |
| BLUE DAIMOND PROPERTIES PVT LTD | 1.58% |
| BLUE LOTUS INVESTMENT FUND | 1.33% |
| MASSACHUSETTS INSTITUTE OF TECHNOLOGY | 1.28% |
| PAYAL BHANSHALI | 1.19% |
| RASHMI JALAN | 1.16% |
| NOMURA INDIA INVESTMENT FUND MOTHER FUND | 1.12% |
| AADI FINANCIAL ADVISORS LLP | 1.03% |
| NARESH JALAN HUF | 0.74% |
| RADHIKA JALAN | 0.01% |
| MAHABIR PRASAD JALAN | 0% |
| MAHABIR PRASAD JALAN HUF | 0% |
| RIDDHI JALAN | 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 | 65.67 kCr | 15.47 kCr | +4.30% | +1.40% | 60.64 | 4.24 | - | - |
| MMFL | M.M.Forgings | 1.69 kCr | 1.51 kCr | +16.80% | -35.30% | 17.72 | 1.12 | - | - |
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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