Sharekhan has given Buy recommendation for Ramkrishna Forgings with a target price of Rs. 279 in its research report issued on Oct 27, 2022
Sharekhan’s research report on Ramkrishna Forgings
Q2FY2023 results were robust with revenue, EBITDA, and PAT exceeding expectations by 9.5%, 8.5%, and 17.1%, respectively. Over FY2022-FY2024E, earnings are likely to report a strong 31.5% CAGR, driven by a 14.7% CAGR in domestic revenue, a 27% CAGR in export revenue, and 17.8% growth in EBITDA. The stock trades at attractive valuations of 10.1x P/E multiple and 5.7x EV/EBITDA multiple on FY2024E, respectively.
We maintain our Buy rating on Ramakrishna Forgings Limited (RKFL) with a revised PT of Rs. 279, led by strong revenue growth, improving margin profile, and attractive valuations.