Sharekhan's research report on Ramkrishna Forgings
With in-line delivery, the management reiterated a 15-20% volume growth guidance for FY24E and hopes to sustain high margins. The Railways project, which would begin from FY27E onwards, will offer a sustainable diversification opportunity. Stock trades at attractive valuations of 11.9x P/E multiple and 6.6x EV/EBITDA multiple on FY2025E, respectively.
Outlook
We maintain a Buy rating on Ramakrishna Forgings Limited (RKFL) with a revised PT of Rs. 406, led by a 17% EBITDA CAGR, expectation of fall in debt, successful commissioning of new capacities and execution of its strong order book.
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