Sharekhan has given Buy recommendation for Ramkrishna Forgings with a target price of Rs. 1480 in its research report issued on Jan 18, 2022
Sharekhan’s research report on Ramkrishna Forgings
Q3FY22 results were mixed, as revenues were in-line with estimates, while PAT came in below expectations. Over FY21-23E, earnings are likely to clock a strong 190.7% CAGR, driven by a 35.5% CAGR in domestic revenue, a 45.7% CAGR in export revenue and a 310-bps rise in EBITDA margins. Stock trades below historical average multiples at a P/E of 13.7x and EV/EBITDA of 7.1x on its FY2023E estimates.
We maintain a Buy on Ramakrishna Forgings Limited (RKFL) with an unchanged PT of Rs. 1,480, led by a continued growth momentum for commercial vehicles in India, Europe and North Americas.
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At 16:00 hrs Ramkrishna Forgings was quoting at Rs 932.50, down Rs 65.05, or 6.52 percent.
It has touched an intraday high of Rs 987.10 and an intraday low of Rs 928.50.
It was trading with volumes of 11,668 shares, compared to its thirty day average of 22,811 shares, a decrease of -48.85 percent.
In the previous trading session, the share closed down 2.97 percent or Rs 30.55 at Rs 997.55.
The share touched its 52-week high Rs 1,259.60 and 52-week low Rs 484.85 on 11 October, 2021 and 18 March, 2021, respectively.
Currently, it is trading 25.97 percent below its 52-week high and 92.33 percent above its 52-week low.
Market capitalisation stands at Rs 2,987.08 crore.