Ramkrishna Forgings Ltd: Share Price Analysis, Intrinsic Value & Fundamentals (2025)

Share Price and Basic Stock Data

Last Updated: February 18, 2025, 6:52 am

Market Cap	11,658 Cr.
Current Price	644
High / Low	1,064/602
Stock P/E	30.6
Book Value	163
Dividend Yield	0.31 %
ROCE	18.7 %
ROE	17.0 %
Face Value	2.00
PEG Ratio	0.42

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for Ramkrishna Forgings Ltd

Competitors of Ramkrishna Forgings Ltd

Stock Name ⇩	Market Cap ⇩	Current Price ⇩	High / Low ⇩	Stock P/E ⇩	Book Value ⇩	Dividend Yield ⇩	ROCE ⇩	ROE ⇩	Face Value ⇩
Happy Forgings Ltd	8,366 Cr.	888	1,300/813	31.5	182	0.45 %	22.7 %	18.7 %	2.00
EL Forge Ltd	43.9 Cr.	21.6	44.4/9.24	17.9	11.6	0.00 %	%	%	10.0
CIE Automotive India Ltd	15,829 Cr.	417	628/401	19.3	163	1.20 %	18.3 %	20.3 %	10.0
Amforge Industries Ltd	13.1 Cr.	9.12	15.5/8.60		8.93	0.00 %	3.55 %	3.17 %	2.00
Tirupati Forge Ltd	370 Cr.	35.7	72.9/14.0	43.7	5.32	0.00 %	18.3 %	15.0 %	2.00
Industry Average	10,047.67 Cr	296.02		136.07	126.43	0.31%	11.50%	13.42%	5.86

All Competitor Stocks of Ramkrishna Forgings Ltd

Quarterly Result

Metric	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	417	579	601	719	699	824	777	892	892	981	1,058	1,023	1,005
Expenses	321	448	460	571	549	649	604	698	700	776	833	806	798
Operating Profit	96	131	141	148	150	175	173	194	192	206	224	217	207
OPM %	23%	23%	24%	21%	21%	21%	22%	22%	22%	21%	21%	21%	21%
Other Income	1	1	1	0	1	1	1	2	5	4	2	19	9
Interest	21	21	27	27	26	29	31	34	36	39	41	36	38
Depreciation	39	40	45	46	47	50	49	56	57	61	68	72	62
Profit before tax	37	71	71	75	77	98	94	106	104	110	117	128	116
Tax %	33%	38%	36%	-12%	33%	31%	35%	36%	24%	25%	26%	27%	30%
Net Profit	25	44	45	84	51	67	61	68	79	82	87	94	81
EPS in Rs	1.54	2.75	2.83	5.24	3.21	4.20	3.81	4.28	4.91	5.00	4.80	5.19	4.47

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

Metric	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	405	434	754	908	921	1,491	1,931	1,216	1,289	2,320	3,193	3,955	4,068
Expenses	341	374	623	727	758	1,202	1,545	1,008	1,065	1,802	2,499	3,116	3,213
Operating Profit	64	60	131	181	163	289	386	209	224	518	694	839	855
OPM %	16%	14%	17%	20%	18%	19%	20%	17%	17%	22%	22%	21%	21%
Other Income	4	1	12	2	7	4	3	6	5	1	4	29	33
Interest	29	23	32	55	78	73	84	80	81	97	122	152	154
Depreciation	23	25	32	53	75	85	121	121	117	169	202	258	263
Profit before tax	16	13	79	75	17	135	184	15	32	253	374	459	472
Tax %	50%	35%	5%	27%	33%	30%	35%	34%	35%	22%	34%	26%
Net Profit	8	8	75	55	11	95	120	10	21	198	248	341	344
EPS in Rs	0.83	0.65	5.49	3.81	0.78	5.82	7.36	0.59	1.29	12.36	15.52	18.89	19.46
Dividend Payout %	24%	31%	7%	11%	26%	3%	4%	0%	0%	14%	13%	11%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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:	12%

Compounded Profit Growth
10 Years:	45%
5 Years:	23%
3 Years:	152%
TTM:	22%

Stock Price CAGR
10 Years:	22%
5 Years:	57%
3 Years:	53%
1 Year:	-14%

Return on Equity
10 Years:	14%
5 Years:	14%
3 Years:	19%
Last Year:	17%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 2:53 pm

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	21	26	27	29	29	33	33	33	32	32	32	36	36
Reserves	231	296	383	442	440	726	840	843	851	1,046	1,290	2,648	2,906
Borrowings	263	511	735	882	957	845	912	993	1,233	1,618	1,333	1,207	1,481
Other Liabilities	117	197	297	332	433	452	417	361	587	785	1,076	1,422	1,532
Total Liabilities	632	1,031	1,442	1,685	1,858	2,056	2,201	2,230	2,703	3,481	3,731	5,312	5,955
Fixed Assets	249	242	532	947	1,024	1,076	1,114	1,175	1,240	1,473	1,693	2,428	2,532
CWIP	40	347	316	35	50	44	130	219	276	129	91	216	429
Investments	0	0	0	0	0	0	0	0	0	55	0	125	129
Other Assets	343	441	594	702	783	936	957	836	1,187	1,823	1,947	2,543	2,864
Total Assets	632	1,031	1,442	1,685	1,858	2,056	2,201	2,230	2,703	3,481	3,731	5,312	5,955

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	-67	20	44	104	144	127	267	254	140	43	745	621
Cash from Investing Activity +	-53	-287	-272	-169	-107	-110	-254	-231	-222	-354	-299	-1,117
Cash from Financing Activity +	121	279	214	67	-37	-17	-12	-22	147	280	-438	625
Net Cash Flow	1	11	-14	1	-1	0	1	1	65	-31	8	129

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-199.00	-451.00	-604.00	-701.00	-794.00	-556.00	-526.00	-784.00	223.00	517.00	693.00	838.00

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	79	114	145	136	176	126	96	103	161	140	89	78
Inventory Days	261	252	169	206	227	153	131	260	247	251	228	223
Days Payable	101	184	150	164	298	154	110	155	246	215	199	205
Cash Conversion Cycle	239	182	164	178	105	125	117	208	162	176	118	96
Working Capital Days	138	119	123	125	114	105	89	120	138	160	102	89
ROCE %		5%	11%	10%	7%	14%	16%	5%	6%	15%	19%	19%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Promoters	46.02%	46.04%	46.24%	46.24%	46.27%	46.27%	46.27%	46.27%	47.41%	43.15%	43.17%	43.17%
FIIs	17.19%	14.54%	13.51%	13.56%	14.52%	14.00%	14.80%	16.34%	18.13%	23.59%	24.54%	23.76%
DIIs	5.39%	6.89%	5.37%	4.93%	4.54%	4.71%	4.76%	4.20%	3.74%	3.62%	3.69%	4.27%
Public	31.14%	32.28%	34.69%	35.11%	34.52%	34.88%	34.02%	33.05%	30.62%	29.58%	28.53%	28.72%
Others	0.26%	0.24%	0.20%	0.17%	0.16%	0.15%	0.15%	0.13%	0.10%	0.08%	0.08%	0.08%
No. of Shareholders	13,332	29,644	43,772	56,638	61,906	58,682	60,137	66,242	83,358	85,637	83,396	96,223

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	10.00	10.00
Basic EPS (Rs.)	20.27	15.52	12.43	6.44	2.97
Diluted EPS (Rs.)	20.09	15.43	12.43	6.44	2.97
Cash EPS (Rs.)	33.17	28.13	22.98	43.02	39.94
Book Value[Excl.RevalReserv]/Share (Rs.)	148.48	82.67	67.45	276.39	268.65
Book Value[Incl.RevalReserv]/Share (Rs.)	148.48	82.67	67.45	276.39	268.65
Revenue From Operations / Share (Rs.)	218.77	199.69	145.12	403.64	373.07
PBDIT / Share (Rs.)	48.07	43.55	32.43	71.49	65.66
PBIT / Share (Rs.)	33.82	30.94	21.83	34.95	28.69
PBT / Share (Rs.)	25.43	23.42	15.84	9.94	4.54
Net Profit / Share (Rs.)	18.93	15.52	12.39	6.47	2.97
NP After MI And SOA / Share (Rs.)	18.89	15.52	12.39	6.47	2.97
PBDIT Margin (%)	21.97	21.80	22.34	17.71	17.59
PBIT Margin (%)	15.45	15.49	15.04	8.65	7.68
PBT Margin (%)	11.62	11.72	10.91	2.46	1.21
Net Profit Margin (%)	8.65	7.77	8.53	1.60	0.79
NP After MI And SOA Margin (%)	8.63	7.77	8.53	1.60	0.79
Return on Networth / Equity (%)	12.72	18.77	18.36	2.34	1.10
Return on Capital Employeed (%)	16.28	21.88	16.93	6.80	6.51
Return On Assets (%)	6.43	6.65	5.68	0.76	0.43
Long Term Debt / Equity (X)	0.28	0.57	0.80	0.75	0.54
Total Debt / Equity (X)	0.41	0.98	1.48	1.29	1.01
Asset Turnover Ratio (%)	0.87	0.88	0.74	0.52	0.50
Current Ratio (X)	1.53	1.26	1.27	1.08	0.99
Quick Ratio (X)	0.81	0.64	0.77	0.67	0.54
Inventory Turnover Ratio (X)	1.87	1.98	2.18	1.63	1.62
Dividend Payout Ratio (NP) (%)	7.15	10.95	2.42	0.00	50.51
Dividend Payout Ratio (CP) (%)	4.08	6.04	1.30	0.00	3.76
Earning Retention Ratio (%)	92.85	89.05	97.58	0.00	49.49
Cash Earning Retention Ratio (%)	95.92	93.96	98.70	0.00	96.24
Interest Coverage Ratio (X)	5.73	5.79	5.41	2.86	2.72
Interest Coverage Ratio (Post Tax) (X)	3.26	3.06	3.06	1.26	1.12
Enterprise Value (Cr.)	13433.86	5836.86	4070.96	2736.18	1373.14
EV / Net Operating Revenue (X)	3.40	1.83	1.75	2.12	1.13
EV / EBITDA (X)	15.46	8.38	7.85	11.99	6.41
MarketCap / Net Operating Revenue (X)	3.16	1.43	1.09	1.30	0.40
Retention Ratios (%)	92.84	89.04	97.57	0.00	49.48
Price / BV (X)	4.65	3.46	2.34	1.89	0.56
Price / Net Operating Revenue (X)	3.16	1.43	1.09	1.30	0.40
EarningsYield	0.02	0.05	0.07	0.01	0.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Ramkrishna Forgings Ltd as of February 18, 2025 is: ₹680.44

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 February 18, 2025, Ramkrishna Forgings Ltd is Undervalued by 5.66% compared to the current share price ₹644.00

Intrinsic Value of Ramkrishna Forgings Ltd as of February 18, 2025 is: 1,170.85

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 February 18, 2025, Ramkrishna Forgings Ltd is Undervalued by 81.81% compared to the current share price ₹644.00

Last 5 Year EPS CAGR: 72.07%

*Investments are subject to market risks

Strength and Weakness

Strength	Weakness
The company has shown consistent growth in sales (264.46 cr) and profit (163.38 cr) over the years.	The stock has a low average ROCE of 10.58%, which may not be favorable. The stock has a high average Working Capital Days of 118.50, which may not be favorable. The stock has a high average Cash Conversion Cycle of 155.83, which may not be favorable. The company has higher borrowings (997.69) compared to reserves (995.54), 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: 11.5%)
  - 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: 13.42%)
  - 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: 30.6 (Industry average Stock P/E: 136.07)
  - 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. 3489.61 Cr. and Equity Capital is Rs. 36.16 Cr. for the Year ended 31/03/2024.

INDUSTRY	ADDRESS	CONTACT
Forgings	23, Circus Avenue, Kolkata West Bengal 700017	secretarial@ramkrishnaforgings.com http://www.ramkrishnaforgings.com

Management
Name	Position Held
Mr. Mahabir Prasad Jalan	Chairman Emeritus & Non Executive Director
Mr. Naresh Jalan	Managing Director
Mr. Lalit Kumar Khetan	WholeTime Director & CFO
Mr. Chaitanya Jalan	Whole Time Director
Mr. Milesh Gandhi	Whole Time Director
Ms. Rekha Shreeratan Bagry	Ind. Non-Executive Woman Director
Mr. Sanjay Kothri	Ind. Non-Executive Director
Mr. Amitabha Guha	Ind. Non-Executive Director
Mr. Sandipan Chakravortty	Ind. Non-Executive Director
Mr. Partha Sarathi Bhattacharyya	Ind. Non-Executive Director
Mr. Ranaveer Sinha	Ind. Non-Executive Director

FAQ

What is Ramkrishna Forgings Ltd's true worth and is it a good investment?

Let's break down Ramkrishna Forgings Ltd's valuation simply:

We calculate intrinsic value using the PE Ratio Method - comparing the company's current price-to-earnings ratio with its historical average and industry peers. Think of it like checking if a stock is "on sale" compared to its typical pricing.

As of 18 February 2025:

Calculated Fair Value: ₹680.44
Current Market Price: ₹644.00
Variance: 5.66% higher

This suggests Ramkrishna Forgings Ltd is currently undervalued by 5.66%. For context:

Market Cap: 11,658 Cr.
52-Week Range: 1,064/602
Reserves (Sep 2024): ₹2,906 Cr
Liabilities: 5,955 Cr

Remember: The PE method gives a snapshot based on earnings multiples. While useful for quick comparisons, investors should also consider growth prospects, industry trends, and economic conditions. This calculation assumes historical PE ratios remain relevant - always verify with current market dynamics.

What is the Market Cap of Ramkrishna Forgings Ltd?

The Market Cap of Ramkrishna Forgings Ltd is 11,658 Cr..

What is the current Stock Price of Ramkrishna Forgings Ltd as on 18 February 2025?

The current stock price of Ramkrishna Forgings Ltd as on 18 February 2025 is ₹644.

What is the High / Low of Ramkrishna Forgings Ltd stocks in FY 2024-2025?

In FY 2024-2025, 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 30.6.

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 0.31 %.

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.