Sharekhan has given Buy recommendation for Ramkrishna Forgings with a target price of Rs. 1480 in its research report issued on Oct 11, 2021
Sharekhan’s research report on Ramkrishna Forgings
Results beat estimates, with revenue, EBITDA and PAT growing 40.2% q-o-q, 46% q-o-q, and 103.6% q-o-q. 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 16x and EV/EBITDA of 8.2x on its FY2023E estimates.
We maintain a Buy on Ramkrishna Forgings Limited (RKFL) with a revised PT of Rs. 1,480, led by a continued growth momentum for commercial vehicles in India, Europe and North America and an upgrade in earnings estimates.