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Last Updated on: 25 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Fundamental Analysis of Ramkrishna Forgings Ltd

Basic Stock Data

Last Updated: July 24, 2024, 10:42 pm

Market Cap 16,119 Cr.
Current Price 891
High / Low998/530
Stock P/E46.9
Book Value 148
Dividend Yield0.22 %
ROCE18.7 %
ROE17.0 %
Face Value 2.00
PEG Ratio0.47

Data Source: screener.in

Competitors of Ramkrishna Forgings Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
EL Forge Ltd 48.2 Cr. 23.728.6/9.0415.7 11.10.00 %%% 10.0
CIE Automotive India Ltd 22,179 Cr. 584628/40127.4 1630.86 %18.3 %20.3 % 10.0
Amforge Industries Ltd 16.3 Cr. 11.417.2/5.53 8.830.00 %3.55 %3.17 % 2.00
Tirupati Forge Ltd 300 Cr. 29.032.7/7.9045.2 4.810.00 %18.8 %15.4 % 2.00
Ramkrishna Forgings Ltd 16,119 Cr. 891998/53046.9 1480.22 %18.7 %17.0 % 2.00
Industry Average16,684.33 Cr382.7339.45146.290.29%11.52%16.42%6.33

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales5204175796017196998247778928929811,0581,023
Expenses414321448460571549649604698700776833806
Operating Profit10696131141148150175173194192206224217
OPM %20%23%23%24%21%21%21%22%22%22%21%21%21%
Other Income21110111254219
Interest19212127272629313436394136
Depreciation37394045464750495657616872
Profit before tax5337717175779894106104110117128
Tax %36%33%38%36%-12%33%31%35%36%24%25%26%27%
Net Profit34254445845167616879828794
EPS in Rs2.121.542.752.835.243.214.203.814.284.915.004.805.19

Last Updated: July 10, 2024, 9:10 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 9:10 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales4054347549089211,4911,9311,2161,2892,3203,1933,955
Expenses3413746237277581,2021,5451,0081,0651,8022,4993,116
Operating Profit6460131181163289386209224518694839
OPM %16%14%17%20%18%19%20%17%17%22%22%21%
Other Income41122743651429
Interest29233255787384808197122152
Depreciation232532537585121121117169202258
Profit before tax16137975171351841532253374459
Tax %50%35%5%27%33%30%35%34%35%22%34%26%
Net Profit88755511951201021198248341
EPS in Rs0.830.655.493.810.785.827.360.591.2912.3615.5218.89
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%

Growth

Compounded Sales Growth
10 Years:25%
5 Years:15%
3 Years:45%
TTM:20%
Compounded Profit Growth
10 Years:45%
5 Years:23%
3 Years:153%
TTM:25%
Stock Price CAGR
10 Years:34%
5 Years:56%
3 Years:75%
1 Year:56%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:19%
Last Year:17%

Last Updated: July 25, 2024, 6:12 am

Balance Sheet

Last Updated: July 10, 2024, 9:10 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital212627292933333332323236
Reserves2182893774424407268408438511,0461,2902,648
Borrowings2635117358829578459129931,2331,6181,3331,207
Other Liabilities1302043033324334524173615877851,0761,417
Total Liabilities6321,0311,4421,6851,8582,0562,2012,2302,7033,4813,7315,308
Fixed Assets2492425329471,0241,0761,1141,1751,2401,4731,6932,428
CWIP4034731635504413021927612991216
Investments000000000550125
Other Assets3434415947027839369578361,1871,8231,9472,538
Total Assets6321,0311,4421,6851,8582,0562,2012,2302,7033,4813,7315,308

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 Days261252169206227153131260252251228222
Days Payable101184150164298154110155248215199205
Cash Conversion Cycle23918216417810512511720816617611895
Working Capital Days1381191231251141058912016416010293
ROCE %5%11%10%7%14%16%5%6%15%19%

Financial Efficiency Indicators Chart

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

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Aditya Birla Sun Life Pure Value Fund2,477,9423.85198.352,477,9422024-07-230%
Samco Active Momentum Fund138,4002.3211.082,477,9422024-07-23-94.41%
Motilal Oswal Nifty Microcap 250 Index Fund112,0521.578.972,477,9422024-07-23-95.48%
Groww Nifty Total Market Index Fund2840.050.022,477,9422024-07-23-99.99%

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) (%)0.0010.952.420.0050.51
Dividend Payout Ratio (CP) (%)0.006.041.300.003.76
Earning Retention Ratio (%)0.0089.0597.580.0049.49
Cash Earning Retention Ratio (%)0.0093.9698.700.0096.24
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 (%)0.0089.0497.570.0049.48
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: 1,182.60

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.

Undervalued: 32.73% compared to the current price 891

Intrinsic Value: 2,365.45

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 165.48% compared to the current price 891

Last 5 Year EPS CAGR: 100.02%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has shown consistent growth in sales (286.17 cr) and profit (137.67 cr) over the years.
  1. The stock has a low average ROCE of 9.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 121.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 156.08, which may not be favorable.
  4. The company has higher borrowings (957.42) compared to reserves (834.17), 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: 11.52%)
      • 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: 16.42%)
      • 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: 46.9 (Industry average Stock P/E: 39.45)
      • 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

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

FAQ

What is the latest fair value of Ramkrishna Forgings Ltd?

The latest fair value of Ramkrishna Forgings Ltd is ₹1182.60.

What is the Market Cap of Ramkrishna Forgings Ltd?

The Market Cap of Ramkrishna Forgings Ltd is 16,119 Cr..

What is the current Stock Price of Ramkrishna Forgings Ltd as on 25 July 2024?

The current stock price of Ramkrishna Forgings Ltd as on 25 July 2024 is 891.

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 998/530.

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

The Stock P/E of Ramkrishna Forgings Ltd is 46.9.

What is the Book Value of Ramkrishna Forgings Ltd?

The Book Value of Ramkrishna Forgings Ltd is 148.

What is the Dividend Yield of Ramkrishna Forgings Ltd?

The Dividend Yield of Ramkrishna Forgings Ltd is 0.22 %.

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