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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532527 | NSE: RKFORGE

Ramkrishna Forgings Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:34 pm

Market Cap 17,429 Cr.
Current Price 964
High / Low1,064/602
Stock P/E47.4
Book Value 163
Dividend Yield0.21 %
ROCE18.7 %
ROE17.0 %
Face Value 2.00
PEG Ratio0.66

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Ramkrishna Forgings Ltd

Competitors of Ramkrishna Forgings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Happy Forgings Ltd 10,069 Cr. 1,0661,300/81338.9 1820.38 %22.7 %18.7 % 2.00
EL Forge Ltd 66.0 Cr. 32.535.2/9.1526.7 11.60.00 %%% 10.0
CIE Automotive India Ltd 17,252 Cr. 455628/40121.1 1631.10 %18.3 %20.3 % 10.0
Amforge Industries Ltd 16.4 Cr. 11.417.2/6.80 8.830.00 %3.55 %3.17 % 2.00
Tirupati Forge Ltd 528 Cr. 51.055.4/11.657.4 5.320.00 %18.3 %15.0 % 2.00
Industry Average13,545.13 Cr415.06180.12143.690.31%12.37%15.20%5.92

All Competitor Stocks of Ramkrishna Forgings Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales4175796017196998247778928929811,0581,0231,005
Expenses321448460571549649604698700776833806798
Operating Profit96131141148150175173194192206224217207
OPM %23%23%24%21%21%21%22%22%22%21%21%21%21%
Other Income11101112542199
Interest21212727262931343639413638
Depreciation39404546475049565761687262
Profit before tax37717175779894106104110117128116
Tax %33%38%36%-12%33%31%35%36%24%25%26%27%30%
Net Profit25444584516761687982879481
EPS in Rs1.542.752.835.243.214.203.814.284.915.004.805.194.47

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4054347549089211,4911,9311,2161,2892,3203,1933,9554,068
Expenses3413746237277581,2021,5451,0081,0651,8022,4993,1163,213
Operating Profit6460131181163289386209224518694839855
OPM %16%14%17%20%18%19%20%17%17%22%22%21%21%
Other Income4112274365142933
Interest29233255787384808197122152154
Depreciation232532537585121121117169202258263
Profit before tax16137975171351841532253374459472
Tax %50%35%5%27%33%30%35%34%35%22%34%26%
Net Profit88755511951201021198248341344
EPS in Rs0.830.655.493.810.785.827.360.591.2912.3615.5218.8919.46
Dividend Payout %24%31%7%11%26%3%4%0%0%14%13%11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)0.00%837.50%-26.67%-80.00%763.64%26.32%-91.67%110.00%842.86%25.25%37.50%
Change in YoY Net Profit Growth (%)0.00%837.50%-864.17%-53.33%843.64%-737.32%-117.98%201.67%732.86%-817.60%12.25%

Ramkrishna Forgings Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:25%
5 Years:15%
3 Years:45%
TTM:18%
Compounded Profit Growth
10 Years:45%
5 Years:23%
3 Years:152%
TTM:28%
Stock Price CAGR
10 Years:32%
5 Years:74%
3 Years:72%
1 Year:27%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:19%
Last Year:17%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital21262729293333333232323636
Reserves2182893774424407268408438511,0461,2902,6482,906
Borrowings2635117358829578459129931,2331,6181,3331,2071,481
Other Liabilities1302043033324334524173615877851,0761,4221,532
Total Liabilities6321,0311,4421,6851,8582,0562,2012,2302,7033,4813,7315,3125,955
Fixed Assets2492425329471,0241,0761,1141,1751,2401,4731,6932,4282,532
CWIP4034731635504413021927612991216429
Investments000000000550125129
Other Assets3434415947027839369578361,1871,8231,9472,5432,864
Total Assets6321,0311,4421,6851,8582,0562,2012,2302,7033,4813,7315,3125,955

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-67204410414412726725414043745621
Cash from Investing Activity +-53-287-272-169-107-110-254-231-222-354-299-1,117
Cash from Financing Activity +12127921467-37-17-12-22147280-438625
Net Cash Flow111-141-101165-318129

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-199.00-451.00-604.00-701.00-794.00-556.00-526.00-784.00223.00517.00693.00838.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days79114145136176126961031621408978
Inventory Days261252169206227153131260252251228223
Days Payable101184150164298154110155248215199205
Cash Conversion Cycle23918216417810512511720816617611896
Working Capital Days1381191231251141058912016416010289
ROCE %5%11%10%7%14%16%5%6%15%19%19%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters46.02%46.04%46.24%46.24%46.27%46.27%46.27%46.27%47.41%43.15%43.17%43.17%
FIIs17.19%14.54%13.51%13.56%14.52%14.00%14.80%16.34%18.13%23.59%24.54%23.76%
DIIs5.39%6.89%5.37%4.93%4.54%4.71%4.76%4.20%3.74%3.62%3.69%4.27%
Public31.14%32.28%34.69%35.11%34.52%34.88%34.02%33.05%30.62%29.58%28.53%28.72%
Others0.26%0.24%0.20%0.17%0.16%0.15%0.15%0.13%0.10%0.08%0.08%0.08%
No. of Shareholders13,33229,64443,77256,63861,90658,68260,13766,24283,35885,63783,39696,223

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue2.002.002.0010.0010.00
Basic EPS (Rs.)20.2715.5212.436.442.97
Diluted EPS (Rs.)20.0915.4312.436.442.97
Cash EPS (Rs.)33.1728.1322.9843.0239.94
Book Value[Excl.RevalReserv]/Share (Rs.)148.4882.6767.45276.39268.65
Book Value[Incl.RevalReserv]/Share (Rs.)148.4882.6767.45276.39268.65
Revenue From Operations / Share (Rs.)218.77199.69145.12403.64373.07
PBDIT / Share (Rs.)48.0743.5532.4371.4965.66
PBIT / Share (Rs.)33.8230.9421.8334.9528.69
PBT / Share (Rs.)25.4323.4215.849.944.54
Net Profit / Share (Rs.)18.9315.5212.396.472.97
NP After MI And SOA / Share (Rs.)18.8915.5212.396.472.97
PBDIT Margin (%)21.9721.8022.3417.7117.59
PBIT Margin (%)15.4515.4915.048.657.68
PBT Margin (%)11.6211.7210.912.461.21
Net Profit Margin (%)8.657.778.531.600.79
NP After MI And SOA Margin (%)8.637.778.531.600.79
Return on Networth / Equity (%)12.7218.7718.362.341.10
Return on Capital Employeed (%)16.2821.8816.936.806.51
Return On Assets (%)6.436.655.680.760.43
Long Term Debt / Equity (X)0.280.570.800.750.54
Total Debt / Equity (X)0.410.981.481.291.01
Asset Turnover Ratio (%)0.870.880.740.520.50
Current Ratio (X)1.531.261.271.080.99
Quick Ratio (X)0.810.640.770.670.54
Inventory Turnover Ratio (X)1.871.982.181.631.62
Dividend Payout Ratio (NP) (%)7.1510.952.420.0050.51
Dividend Payout Ratio (CP) (%)4.086.041.300.003.76
Earning Retention Ratio (%)92.8589.0597.580.0049.49
Cash Earning Retention Ratio (%)95.9293.9698.700.0096.24
Interest Coverage Ratio (X)5.735.795.412.862.72
Interest Coverage Ratio (Post Tax) (X)3.263.063.061.261.12
Enterprise Value (Cr.)13433.865836.864070.962736.181373.14
EV / Net Operating Revenue (X)3.401.831.752.121.13
EV / EBITDA (X)15.468.387.8511.996.41
MarketCap / Net Operating Revenue (X)3.161.431.091.300.40
Retention Ratios (%)92.8489.0497.570.0049.48
Price / BV (X)4.653.462.341.890.56
Price / Net Operating Revenue (X)3.161.431.091.300.40
EarningsYield0.020.050.070.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ramkrishna Forgings Ltd as of November 22, 2024 is: 1,316.21

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Ramkrishna Forgings Ltd is Undervalued by 36.54% compared to the current share price 964.00

Intrinsic Value of Ramkrishna Forgings Ltd as of November 22, 2024 is: 2,264.83

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Ramkrishna Forgings Ltd is Undervalued by 134.94% compared to the current share price 964.00

Last 5 Year EPS CAGR: 72.07%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (264.46 cr) and profit (163.38 cr) over the years.
  1. The stock has a low average ROCE of 10.58%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 120.67, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 156.17, which may not be favorable.
  4. The company has higher borrowings (997.69) compared to reserves (993.54), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Ramkrishna Forgings Ltd:
    1. Net Profit Margin: 8.65%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.28% (Industry Average ROCE: 12.37%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.72% (Industry Average ROE: 15.2%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3.26
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.81
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 47.4 (Industry average Stock P/E: 180.12)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.41
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Ramkrishna Forgings Ltd. is a Public Limited Listed company incorporated on 12/11/1981 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L74210WB1981PLC034281 and registration number is 034281. Currently Company is involved in the business activities of Manufacture of other fabricated metal products; metalworking service activities. Company’s Total Operating Revenue is Rs. 2285.37 Cr. and Equity Capital is Rs. 31.98 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Forgings23, Circus Avenue, Kolkata West Bengal 700017secretarial@ramkrishnaforgings.com
http://www.ramkrishnaforgings.com
Management
NamePosition Held
Mr. Mahabir Prasad JalanChairman Emeritus & Non Executive Director
Mr. Naresh JalanManaging Director
Mr. Lalit Kumar KhetanWholeTime Director & CFO
Mr. Chaitanya JalanWhole Time Director
Mr. Milesh GandhiWhole Time Director
Ms. Rekha Shreeratan BagryInd. Non-Executive Woman Director
Mr. Sanjay KothriInd. Non-Executive Director
Mr. Amitabha GuhaInd. Non-Executive Director
Mr. Sandipan ChakravorttyInd. Non-Executive Director
Mr. Partha Sarathi BhattacharyyaInd. Non-Executive Director
Mr. Ranaveer SinhaInd. Non-Executive Director

FAQ

What is the latest intrinsic value of Ramkrishna Forgings Ltd?

The latest intrinsic value of Ramkrishna Forgings Ltd as on 22 November 2024 is ₹1316.21, which is 36.54% higher than the current market price of ₹964.00.

What is the Market Cap of Ramkrishna Forgings Ltd?

The Market Cap of Ramkrishna Forgings Ltd is 17,429 Cr..

What is the current Stock Price of Ramkrishna Forgings Ltd as on 22 November 2024?

The current stock price of Ramkrishna Forgings Ltd as on 22 November 2024 is 964.

What is the High / Low of Ramkrishna Forgings Ltd stocks in FY 2024?

In FY 2024, the High / Low of Ramkrishna Forgings Ltd stocks is 1,064/602.

What is the Stock P/E of Ramkrishna Forgings Ltd?

The Stock P/E of Ramkrishna Forgings Ltd is 47.4.

What is the Book Value of Ramkrishna Forgings Ltd?

The Book Value of Ramkrishna Forgings Ltd is 163.

What is the Dividend Yield of Ramkrishna Forgings Ltd?

The Dividend Yield of Ramkrishna Forgings Ltd is 0.21 %.

What is the ROCE of Ramkrishna Forgings Ltd?

The ROCE of Ramkrishna Forgings Ltd is 18.7 %.

What is the ROE of Ramkrishna Forgings Ltd?

The ROE of Ramkrishna Forgings Ltd is 17.0 %.

What is the Face Value of Ramkrishna Forgings Ltd?

The Face Value of Ramkrishna Forgings Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Ramkrishna Forgings Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE