Buy Ramkrishna Forgings; target of Rs 1419: Khambatta Securities

Khambatta Securities is bullish on Ramkrishna Forgings has recommended buy rating on the stock with a target price of Rs 1419 in its research report dated October 18, 2021.

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// else // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exists in your watchlist’); // //} } //$ (‘.accdiv’).html(”); //$ (‘.accdiv’).html(appndStr); } }, //complete:function(d){ // if(typparam1==1) // { // watchlist_popup(‘open’); // } //} }); }); } else { var disNam =’stock’; if($ (‘#impact_option’).html()==’STOCKS’) disNam =’stock’; if($ (‘#impact_option’).html()==’MUTUAL FUNDS’) disNam =’mutual fund’; if($ (‘#impact_option’).html()==’COMMODITIES’) disNam =’commodity’; alert(‘Please select at least one ‘+disNam); } } else { AFTERLOGINCALLBACK = ‘overlayPopup(‘+e+’, ‘+t+’, ‘+n+’)’; commonPopRHS(); /*work_div = 1; typparam = t; typparam1 = n; check_login_pop(1)*/ } } function pcSavePort(param,call_pg,dispId) { var adtxt=”; if(readCookie(‘nnmc’)){ if(call_pg == “2”) { pass_sec = 2; } else { pass_sec = 1; } var url = ‘//www.moneycontrol.com/mccode/common/saveWatchlist.php’; $ .ajax({url:url, type:”POST”, //data:{q_f:3,wSec:1,dispid:$ (‘input[name=sc_dispid_port]’).val()}, data:{q_f:3,wSec:pass_sec,dispid:dispId}, dataType:”json”, success:function(d) { //var accStr= ”; 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Khambatta Securities’ research report on Ramkrishna Forgings

Ramkrishna Forgings Ltd (RKF) has reported strong set of numbers for the quarter with a top-line growth of 130% y-o-y. The Operating Revenue stood at ? 57,882 lakhs for the 2Q FY22 as compared to ?25,202 in the same quarter last year. The EBITDA has seen a 188% jump on a y-o-y basis at ?13,107 lakh for quarter ended September 2021. Sequentially the Operating Revenue and EBITDA have seen a growth of 37% each signalling relatively stable operating costs for the company. The EBITDA Margins have improved by 457 bps y-o-y and a marginal decline of 10 bps Q-o-Q. The Net Profit has witnessed a significant growth in the quarter. The PAT stood at ?4,406 lakhs and ?145 lakhs for 2Q FY22 and 2QFY21 respectively. The PAT margins jumped by 700 bps to 7.6% during the 3 months ended September 21. The company has achieved an Export turnover of ? 28,673 lakh in 2Q FY22 as compared to ?11,390 lakh in 2Q FY21 registering a growth of ~152%.

Outlook

Assigning a target multiple of 16.0x FY24E EPS, our valuation generates a price target of ? 1,419, informing a BUY rating with an upside potential of 18% from the current levels.

For all recommendations report, click here

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