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Last Updated on: 28 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Ramkrishna Forgings Ltd

About the Company - Ramkrishna Forgings Ltd

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
Mr. Naresh JalanManaging Director
Mr. Lalit Kumar KhetanWholeTime Director & CFO
Mr. Chaitanya JalanWhole Time Director
Mr. Pawan Kumar KediaWhole Time Director
Ms. Rekha Shreeratan BagryInd. Non-Executive Woman Director
Mr. Sanjay KothriInd. Non-Executive Director
Mr. Ranaveer SinhaInd. Non-Executive Director
Mr. Padam Kumar KhaitanInd. Non-Executive Director
Mr. Yudhisthir Lal MadanInd. Non-Executive Director
Mr. Amitabha GuhaInd. Non-Executive Director
Mr. Sandipan ChakravorttyInd. Non-Executive Director
Mr. Partha Sarathi BhattacharyyaInd. Non-Executive Director
Mr. Ram Tawakya SinghInd. Non-Executive Director

Ramkrishna Forgings Ltd. Share Price Update

Share PriceValue
Today₹766.80
Previous Day₹751.10

Basic Stock Data of Ramkrishna Forgings Ltd

Market Cap 13,856 Cr.
Current Price 766
High / Low815/245
Stock P/E43.8
Book Value 85.4
Dividend Yield0.27 %
ROCE18.5 %
ROE20.6 %
Face Value 2.00

Data Source: screener.in

Competitors of Ramkrishna Forgings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tirupati Forge Ltd 186 Cr. 19.021.8/6.7527.1 3.970.00 %31.8 %29.2 % 2.00
Metalyst Forgings Ltd 16.1 Cr. 3.705.35/2.37 5800.00 %%% 10.0
MM Forgings Ltd (MMFL) 2,330 Cr. 9651,099/80017.3 3130.62 %15.1 %19.8 % 10.0
Industry Average844.03 Cr329.2314.80298.990.21%15.63%16.33%7.33

Ramkrishna Forgings Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales4035204175796017196998247778928929811,058
Expenses327414321448460571549649604698700776833
Operating Profit7610696131141148150175173194192206224
OPM %19%20%23%23%24%21%21%21%22%22%22%21%21%
Other Income1211101112542
Interest22192121272726293134363941
Depreciation33373940454647504956576168
Profit before tax235337717175779894106104110117
Tax %34%36%33%38%36%-12%33%31%35%36%24%25%26%
Net Profit15342544458451676168798287
EPS in Rs0.932.121.542.752.835.243.214.203.814.284.915.004.80

Ramkrishna Forgings Ltd Quarterly Chart

Ramkrishna Forgings Ltd Profit & Loss

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales4054347549089211,4911,9311,2161,2892,3203,1933,543
Expenses3413746237277581,2021,5451,0081,0651,8022,4992,778
Operating Profit6460131181163289386209224518694765
OPM %16%14%17%20%18%19%20%17%17%22%22%22%
Other Income41122743651411
Interest29233255787384808197122140
Depreciation232532537585121121117169202223
Profit before tax16137975171351841532253374413
Tax %50%35%5%27%33%30%35%34%35%22%34%
Net Profit88755511951201021198248290
EPS in Rs0.830.655.493.810.785.827.360.591.2912.3615.5218.00
Dividend Payout %24%31%7%11%26%3%4%0%0%14%13%

Ramkrishna Forgings Ltd Profit & Loss Yearly Chart

Ramkrishna Forgings Ltd Growth

Compounded Sales Growth
10 Years:23%
5 Years:16%
3 Years:38%
TTM:27%
Compounded Profit Growth
10 Years:41%
5 Years:21%
3 Years:192%
TTM:20%
Stock Price CAGR
10 Years:43%
5 Years:51%
3 Years:89%
1 Year:175%
Return on Equity
10 Years:12%
5 Years:13%
3 Years:15%
Last Year:21%

Ramkrishna Forgings Ltd Balance Sheet

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital212627292933333332323233
Reserves2182893774424407268408438511,0461,2901,512
Borrowings2635117358829578459129931,2331,6181,3331,561
Other Liabilities1302043033324334524173615877851,0761,375
Total Liabilities6321,0311,4421,6851,8582,0562,2012,2302,7033,4813,7314,481
Fixed Assets2492425329471,0241,0761,1141,1751,2401,4731,6931,990
CWIP4034731635504413021927612991181
Investments00000000055011
Other Assets3434415947027839369578361,1871,8231,9472,299
Total Assets6321,0311,4421,6851,8582,0562,2012,2302,7033,4813,7314,481

Ramkrishna Forgings Ltd Reserves and Borrowings Chart

Ramkrishna Forgings Ltd Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -67204410414412726725414043745
Cash from Investing Activity -53-287-272-169-107-110-254-231-222-354-299
Cash from Financing Activity 12127921467-37-17-12-22147280-438
Net Cash Flow111-141-101165-318

Ramkrishna Forgings Ltd Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days791141451361761269610316214089
Inventory Days261252169206227153131260252251228
Days Payable101184150164298154110155248215199
Cash Conversion Cycle239182164178105125117208166176118
Working Capital Days13811912312511410589120164160102
ROCE %5%11%10%7%14%16%5%6%15%19%

Ramkrishna Forgings Ltd Financial Efficiency Indicators Chart

Ramkrishna Forgings Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters45.90%45.99%46.02%46.04%46.24%46.24%46.27%46.27%46.27%46.27%47.41%43.15%
FIIs15.55%16.19%17.19%14.54%13.51%13.56%14.52%14.00%14.80%16.34%18.13%23.59%
DIIs7.94%6.94%5.39%6.89%5.37%4.93%4.54%4.71%4.76%4.20%3.74%3.62%
Public30.16%30.46%31.14%32.28%34.69%35.11%34.52%34.88%34.02%33.05%30.62%29.58%
Others0.45%0.43%0.26%0.24%0.20%0.17%0.16%0.15%0.15%0.13%0.10%0.08%
No. of Shareholders9,59114,85513,33229,64443,77256,63861,90658,68260,13766,24283,35885,637

Ramkrishna Forgings Ltd Shareholding Pattern Chart

No. of Ramkrishna Forgings Ltd Shareholders

Ramkrishna Forgings Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Aditya Birla Sun Life Pure Value Fund24779423.85198.35
Samco Active Momentum Fund1384002.3211.08
Motilal Oswal Nifty Microcap 250 Index Fund1120521.578.97
Groww Nifty Total Market Index Fund2840.050.02

Ramkrishna Forgings Ltd ROCE Trend

Ramkrishna Forgings Ltd EPS Trend

Ramkrishna Forgings Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.0010.0010.0010.00
Basic EPS (Rs.)15.5212.436.442.9736.85
Diluted EPS (Rs.)15.4312.436.442.9736.75
Cash EPS (Rs.)28.1322.9843.0239.9473.96
Book Value[Excl.RevalReserv]/Share (Rs.)82.6767.45276.39268.65267.57
Book Value[Incl.RevalReserv]/Share (Rs.)82.6767.45276.39268.65267.57
Revenue From Operations / Share (Rs.)199.69145.12403.64373.07592.23
PBDIT / Share (Rs.)43.5532.4371.4965.66118.68
PBIT / Share (Rs.)30.9421.8334.9528.6981.55
PBT / Share (Rs.)23.4215.849.944.5456.35
Net Profit / Share (Rs.)15.5212.396.472.9736.84
NP After MI And SOA / Share (Rs.)15.5212.396.472.9736.84
PBDIT Margin (%)21.8022.3417.7117.5920.03
PBIT Margin (%)15.4915.048.657.6813.77
PBT Margin (%)11.7210.912.461.219.51
Net Profit Margin (%)7.778.531.600.796.22
NP After MI And SOA Margin (%)7.778.531.600.796.22
Return on Networth / Equity (%)18.7718.362.341.1013.76
Return on Capital Employeed (%)21.8816.936.806.5118.91
Return On Assets (%)6.655.680.760.435.45
Long Term Debt / Equity (X)0.570.800.750.540.52
Total Debt / Equity (X)0.981.481.291.010.94
Asset Turnover Ratio (%)0.880.740.520.500.85
Current Ratio (X)1.261.271.080.991.14
Quick Ratio (X)0.640.770.670.540.72
Inventory Turnover Ratio (X)1.982.181.631.623.44
Dividend Payout Ratio (NP) (%)10.952.420.0050.510.00
Dividend Payout Ratio (CP) (%)6.041.300.003.760.00
Earning Retention Ratio (%)89.0597.580.0049.490.00
Cash Earning Retention Ratio (%)93.9698.700.0096.240.00
Interest Coverage Ratio (X)5.795.412.862.724.71
Interest Coverage Ratio (Post Tax) (X)3.063.061.261.122.46
Enterprise Value (Cr.)5836.864070.962736.181373.142522.42
EV / Net Operating Revenue (X)1.831.752.121.131.31
EV / EBITDA (X)8.387.8511.996.416.52
MarketCap / Net Operating Revenue (X)1.431.091.300.400.88
Retention Ratios (%)89.0497.570.0049.480.00
Price / BV (X)3.462.341.890.561.95
Price / Net Operating Revenue (X)1.431.091.300.400.88
EarningsYield0.050.070.010.010.07

Ramkrishna Forgings Ltd Profitability Ratios (%)

Ramkrishna Forgings Ltd Liquidity Ratios

Ramkrishna Forgings Ltd Liquidity Ratios (%)

Ramkrishna Forgings Ltd Interest Coverage Ratios (X)

Ramkrishna Forgings Ltd Valuation Ratios

Fair Value / Intrinsic Value of Ramkrishna Forgings Ltd

Fair Value: ₹772.63

The stock is undervalued by 0.87% compared to the current price ₹766

*Investments are subject to market risks

Strength and Weakness of Ramkrishna Forgings Ltd

StrengthWeakness
  1. The company has shown consistent growth in sales (286.17 cr) and profit (133.83 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 39.59 and average Dividend Yield of 12.13%.
  2. The stock has a low average ROCE of 9.82%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 123.55, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 161.64, which may not be favorable.
  5. The company has higher borrowings (986.92) compared to reserves (739.50), which may suggest financial risk.

Should I Buy Ramkrishna Forgings Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Ramkrishna Forgings Ltd:
    1. Net Profit Margin: 7.77%
      • 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: 21.88% (Industry Average ROCE: 15.63%)
      • 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. Interest Coverage Ratio (Post Tax): 3.06
      • 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.
    4. Quick Ratio: 0.64
      • 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.
    5. ✗ Stock P/E: 42.1 (Industry average Stock P/E: 15.33)
      • 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.
    6. ✓ Total Debt / Equity: 0.98
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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