Khambatta Securities has given Buy recommendation for Ramkrishna Forgings with a target price of Rs. 802 in its research report issued on May 18, 2021

Khambatta Securities’ research report on Ramkrishna Forgings

Ramkrishna Forgings Limited (RKF) is a manufacturer of forged, rolled and machined components, supplying to OEMs and automotive part manufacturers. RKF’s products are used across automotive and industrial applications. Almost 90% of the company’s revenues come from the automotive sector (principally the CV segment) while exports account for 45% of revenues.

Outlook

Assigning a target multiple of 18.0x FY23E EPS, our valuation generates a price target of ₹802, informing a BUY rating with an upside potential of 26%.

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