In the ever-evolving landscape of the Indian manufacturing industry, Ramkrishna Forgings Ltd stands as a formidable player, crafting its path towards excellence. With its current share price at ₹660 and a rich history of supplying forged components to sectors ranging from automobiles to railways and engineering, the company showcases resilience and ambition. As we embark on a journey into the future, the burning question arises: Can Ramkrishna Forgings ascend to the coveted 1000 INR mark by 2030? To decipher this trajectory, we’ll delve into the company’s financial health, strategic expansions, and its MOU with ePropelled for pioneering motor technology. Join us as we explore the prospects and potential of Ramkrishna Forgings on its path to prosperity in the coming years.
ABOUT RAMKRISHNA FORGINGS
Ramkrishna Forgings Limited, established on November 12th, 1981, embodies a legacy of integrity and relentless ambition.
Evolving into a limited company in 1995, it now operates with a team of highly qualified professionals and boasts state-of-the-art manufacturing facilities, adhering to international quality standards.
The company’s reach extends across diverse sectors, including automotive, railways, farm equipment, oil and gas, power, construction, earthmoving, and mining, both in India and international markets.
As a preferred supplier to industry giants like TATA Motors, Daimler, Volvo, and more, Ramkrishna Forgings has consistently demonstrated its commitment to excellence in the forging industry, backed by certifications such as IATF 16949, ISO 45001, and ISO 14001. Under the leadership of Chairman Mr. Mahabir Prasad Jalan and Managing Director Mr. Naresh Jalan, the company continues to innovate and thrive in the dynamic world of forgings and manufacturing.
Ramkrishna Forgings Q1 FY2024 Results: Summary and Key Points
- Profit Surge: Ramkrishna Forgings reported a significant YoY profit increase, with a 63% jump in profit, reaching Rs 77 crore for Q1 FY2024, compared to Rs 47.2 crore in the same period last year.
- Revenue Growth: The company also witnessed robust revenue growth, with a 28% YoY increase in revenue, totaling Rs 836 crore for the quarter, compared to Rs 650 crore in Q1 FY23.
- Operational Efficiency: The company’s Managing Director, Naresh Jalan, highlighted their focus on enhancing operational efficiency and productivity through automation and AI, contributing to improved financial performance.
- Debt Reduction Strategy: Ramkrishna Forgings is actively working to reduce its debt burden and aims to achieve a debt to EBITDA level of 1:1 by FY25, emphasizing financial discipline and stability.
- Strategic Acquisition: In a move to diversify its product offerings and expand its market presence, Ramkrishna Forgings announced the acquisition of 100% equity in Multitech Auto and its subsidiary, Mal Metalliks, for Rs 212 crore. This strategic acquisition positions the company for growth and a broader product portfolio, including differential assemblies and trailer axle assemblies.
RAMKRISHNA FORGINGS IN RECENT NEWS
- Ramkrishna Forgings reaches a 52-week high following an informal approval from NCLT for the acquisition of JMT Auto.
- Ramkrishna Forgings’ stock surged to a 52-week peak at Rs 690 during the morning trade on August 22. This rally was triggered by the company’s announcement of a ‘verbal’ approval from the principal bench of the National Company Law Tribunal for its acquisition of JMT Auto.
- Ramkrishna Forgings is poised for market attention following the acquisition of orders worth Rs 145 crore in the European Original Equipment Manufacturer (OEM) sector. The company, renowned for its supply of rolled, forged, and machined products, secured a substantial business contract amounting to 16 million euros through a long-term agreement spanning four years. This development is set to strengthen Ramkrishna Forgings’ standing within the European OEM sector.
HOW TO BUY RAMKRISHNA FORGINGS SHARES IN INDIA?
You can buy Ramkrishna Forgings shares in India through various stockbrokers and trading platforms. Here are some popular ones:
- Zerodha
- ICICI Direct
- HDFC Securities
- Sharekhan
- Upstox
- Kotak Securities
- 5Paisa
- Angel Broking
- Motilal Oswal
- Axis Direct
RAMKRISHNA FORGINGS SHARE PRICE TARGET 2023 TO 2025
Let’s examine the statistics regarding the projected share price target for the period between 2023 and 2025, after conducting a thorough review of the company.
| When | Maximum Price | Minimum Price |
| August 2023 | ₹693.00 | ₹630.00 |
| September 2023 | ₹708.94 | ₹644.49 |
| October 2023 | ₹688.29 | ₹625.72 |
| November 2023 | ₹702.06 | ₹638.23 |
| December 2023 | ₹723.12 | ₹657.38 |
In August 2023, Ramkrishna Forgings’ share price is expected to continue its upward trajectory, starting the month at ₹693.00. Analysts anticipate that this positive momentum will persist throughout the remainder of the year, with the potential for the share price to reach higher levels by December, possibly surpassing ₹723.12. Investors will closely monitor these developments and consider the company’s performance as they assess future investment opportunities.
| When | Maximum Price | Minimum Price |
| January 2024 | ₹737.88 | ₹641.63 |
| February 2024 | ₹752.93 | ₹654.73 |
| March 2024 | ₹760.54 | ₹661.34 |
| April 2024 | ₹738.39 | ₹642.08 |
| May 2024 | ₹723.91 | ₹629.49 |
| June 2024 | ₹774.58 | ₹673.55 |
| July 2024 | ₹797.82 | ₹693.76 |
| August 2024 | ₹813.78 | ₹707.63 |
| September 2024 | ₹830.05 | ₹721.78 |
| October 2024 | ₹843.55 | ₹733.52 |
| November 2024 | ₹877.29 | ₹762.86 |
| December 2024 | ₹894.84 | ₹778.12 |
In December 2024, Ramkrishna Forgings’ shares are expected to maintain their upward trajectory, with the maximum price reaching ₹894.84 and the minimum price stabilizing at ₹778.12. This progressive trend is indicative of a positive outlook for the company’s shares throughout the year. Analysts and investors will closely monitor these developments, as the share price target for 2024 seems promising, building on the consistent growth witnessed in previous months.
| When | Maximum Price | Minimum Price |
| January 2025 | ₹912.73 | ₹702.10 |
| February 2025 | ₹960.77 | ₹739.06 |
| March 2025 | ₹979.99 | ₹753.84 |
| April 2025 | ₹970.29 | ₹746.37 |
| May 2025 | ₹951.26 | ₹731.74 |
| June 2025 | ₹975.04 | ₹750.03 |
| July 2025 | ₹989.89 | ₹761.45 |
| August 2025 | ₹1,025.79 | ₹789.07 |
| September 2025 | ₹1,046.31 | ₹804.85 |
| October 2025 | ₹1,067.23 | ₹820.95 |
| November 2025 | ₹1,036.15 | ₹797.04 |
| December 2025 | ₹1,056.87 | ₹812.98 |
By December 2025, Ramkrishna Forgings’ shares are anticipated to continue their ascent, with the maximum price touching ₹1,056.87 and the minimum price resting at ₹812.98. This steady climb reflects the company’s consistent and favorable performance. Investors and market observers will be closely attentive to these developments, as the share price target for 2025 shows promise, building upon the upward momentum observed over the preceding months.
| Year | Maximum Price | Minimum Price |
| 2026 | ₹1,215.40 | ₹850.78 |
| 2027 | ₹1,033.09 | ₹723.17 |
| 2028 | ₹1,343.02 | ₹899.82 |
| 2029 | ₹1,745.93 | ₹1,222.15 |
| 2030 | ₹1,833.22 | ₹1,283.26 |
Over the upcoming years from 2026 to 2030, Ramkrishna Forgings’ share prices are expected to maintain a progressive trend, with the maximum price projected to reach ₹1,833.22 in 2030, while the minimum price is anticipated to stabilize at ₹850.78 in 2026. This trajectory indicates the company’s positive outlook and potential for steady growth in the coming years. Investors and market analysts will be closely monitoring these trends to gauge the trajectory of Ramkrishna Forgings’ shares as the years unfold.
RAMKRISHNA FORGINGS FINANCIAL CONDITION (LAST 5 YEARS)
| Year | 2019 | 2020 | 2021 | 2022 | 2023 |
| Sales | 1,931 | 1,216 | 1,289 | 2,320 | 3,193 |
| Expenses | 1,545 | 1,008 | 1,065 | 1,802 | 2,501 |
| Operating Profit | 386 | 209 | 224 | 518 | 692 |
| OPM % | 20% | 17% | 17% | 22% | 22% |
| Other Income | 3 | 6 | 5 | 1 | 4 |
| Interest | 84 | 80 | 81 | 97 | 120 |
| Depreciation | 121 | 121 | 117 | 169 | 202 |
| Profit before tax | 184 | 15 | 32 | 253 | 374 |
| Tax % | 35% | 34% | 35% | 22% | 34% |
| Net Profit | 120 | 10 | 21 | 198 | 248 |
| EPS in Rs | 7.36 | 0.59 | 1.29 | 12.36 | 15.48 |
| Dividend Payout % | 4% | 0% | 0% | 14% | 3% |
Ramkrishna Forgings has demonstrated a remarkable financial performance over the last five years, showcasing consistent growth and financial stability. From 2019 to 2023, the company’s sales exhibited impressive upward momentum, surging from Rs 1,931 crore to Rs 3,193 crore. Simultaneously, prudent expense management allowed the company to maintain a healthy operating profit margin, which reached 22% in 2023, highlighting operational efficiency. Despite fluctuations in interest and depreciation expenses, the company steadily increased its profit before tax, with a significant leap in 2022, reaching Rs 253 crore. A noteworthy aspect is the fluctuating tax rate, which decreased substantially in 2022, contributing to a robust net profit of Rs 248 crore in the same year. This financial performance, characterized by consistent growth and profitability, underlines Ramkrishna Forgings’ resilience and strategic financial management over the past five years.
Also read:
DIVISLAB Share Price Target 2023, 2024, 2025 to 2030: Can it touch 5000 INR in 2023?
FAQs
Ramkrishna Forgings’ share price target for 2025 suggests a consistent upward trajectory, with the share price projected to reach ₹1,056.87 by the end of the year.
Looking ahead to 2030, Ramkrishna Forgings’ shares are expected to continue their upward journey, with a projected maximum price of ₹1,833.22 by that year.
Is it worthwhile to invest in Ramkrishna Forgings for the long term?
The share price analysis spanning several years indicates a positive and steady growth trend for Ramkrishna Forgings. This suggests that investing in the company for the long term might be a strategic move.
Will the Ramkrishna Forgings stock grow?
The historical and projected share price data suggests that Ramkrishna Forgings’ stock has been on an upward trajectory and is expected to continue growing over the coming years.
Can Ramkrishna Forgings reach 1000 INR?
While the analysis doesn’t explicitly mention a share price of ₹1000 INR, considering the consistent growth trend, it is plausible that Ramkrishna Forgings’ share price could approach or potentially surpass ₹1000 INR within the forecast period.
CONCLUSION
In conclusion, Ramkrishna Forgings presents an intriguing investment opportunity in the automotive components sector. While the stock appears overvalued with a current P/E ratio of 37.8 compared to a median P/E of 17.6, the company boasts several strengths. It has consistently delivered strong profit growth of 21.2% CAGR over the last five years and has improved its debtor days significantly, reflecting efficient financial management. Moreover, with a median sales growth of 20.4% over the past decade and reduced working capital requirements, the company shows resilience and adaptability in a competitive market. However, potential investors should carefully weigh these factors against the stock’s high valuation and make informed decisions based on their long-term investment objectives.
What did we learn?
- 1 ABOUT RAMKRISHNA FORGINGS
- 2 Ramkrishna Forgings Q1 FY2024 Results: Summary and Key Points
- 3 RAMKRISHNA FORGINGS IN RECENT NEWS
- 4 HOW TO BUY RAMKRISHNA FORGINGS SHARES IN INDIA?
- 5 RAMKRISHNA FORGINGS SHARE PRICE TARGET 2023 TO 2025
- 6 RAMKRISHNA FORGINGS FINANCIAL CONDITION (LAST 5 YEARS)
- 7 FAQs
- 8 CONCLUSION
