Ramkrishna Forgings Ltd., incorporated in the year 1981, is a Small Cap company (having a market cap of Rs 3894.11 Crore) operating in Auto Ancillaries sector.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 417.69 Crore, down -20.11 % from last quarter Total Income of Rs 522.81 Crore and up 264.58 % from last year same quarter Total Income of Rs 114.57 Crore. Company reported net profit after tax of Rs 24.69 Crore in latest quarter.
Investment Rationale
Backed by CV upcycle and a robust order book, the brokerage expect revenue/EBITDA CAGRs of 33%/43% in FY21-24E. Growing OCFs and moderating capex will drive B/S deleveraging. Net debt/EBITDA should reduce to 1.4x in FY24E from 5x in FY21. The brokerage initiates with a Buy rating and a DCF-based Dec’22E TP of Rs1,530, implying a forward EV/EBITDA of 9x.
Promoter/FII Holdings
Promoters held 46 per cent stake in the company as of June 30, 2021, while FIIs held 13.8 per cent, DIIs 6.9 per cent and public and others 33.3 per cent.
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