Ramkrishna Forgings

RKFORGE have become an important part of the global market

Aim to enter two biggest markets of trailer axle and differentials.


  • 40% of last year’s what order wins will start from second quarter onwards

Capex :

  • Installed cold forging capability for which they have already received complete sold-out order for seven years, which we’ll start operations from FY '25 first quarter
  • capex of around INR 300 Crores to INR 350 Crores

Order :

  • Total order wins of about INR 7.7 billion, INR 770 Crores in FY '23
  • Company has secured a prestigious order of EUR 4.5 million from a European railway passenger coach manufacturer.
  • On the TWL consortium TWL has signed a significant contract work with Ministry of Railway Government of India under Aatmanirbhar Bharat initiative. This contract entails the supply of Ramkrishna Forgings Limited
  • 1.54 million forged wheels further solidifying our commitment to supporting the growth and modernization of the Indian railway sector.


  • Company has commenced commercial production of 13,700 tons per annum of R A shaft press line and 10,100 tons for the 5-inch Upsetter.
  • Due to the extension in production capacity totaling 23,800 tons per annum
    will strengthen our ability to meet the increasing demand for high-quality post components in the automotive industry.
  • Total production capacity now spread 210,900 ton per annum,
  • Year-on-year growth of 28%.
  • EBITDA margin for Q1 FY '24 : 22.4%

Acquisitions :

  • Approved acquisition of Multitech Auto Private Limited and its whollyowned subsidiary Mal Metalliks Private Limited.
    • The company has a capacity to manufacture 21,600 metric ton per annum machine SG & CI castings and bar draw facility of 6,000 metric ton per annum
    • This acquisition will make its presence in the passenger vehicle, light commercial vehicle and heavy commercial vehicle segments.
  • Acquisition of Casting and with the acquisition of Multitech, had helped RKFORGE to be all rounder except the sheet metal, and tyres and engine apart from that they are available across all platforms in any vehicle, which is moving on road

About Rail Wheel Project

❖ Ramkrishna Forgings holds 51% in the Joint Venture and is a lead partner in this railway contract
❖ It will establish a manufacturing plant in India for the production of 200,000 forged wheels per annum
❖ Expected to start operation by end of FY26


Is the planned growth discounted in the current prices since as per the expected growth the stock still seems to be reasonably valued based on FY 25 numbers.


Well, it appears that it is still reasonably valued; in simpler terms, it falls into the category of GARP (Growth at a Reasonable Price). As long as the EPS CAGR (Compound Annual Growth Rate of Earnings Per Share) remains higher than the PE CAGR (Compound Annual Growth Rate of Price-to-Earnings ratio), things should be fine.

The key factor to consider is whether the debt reduction plan is on track or not. The target for the DEBT/EBITDA ratio is set at 1:1. If the company manages to reduce its debt, this will have a positive impact on PAT. I still believe it is reasonably valued.


Source : https://www.bseindia.com/xml-data/corpfiling/AttachLive/390f65c4-e1fa-4f90-8083-6c0c5b611188.pdf

This is to inform you that the Management of the Company is schedule to meet with the following
Analyst/Institutional Investors in United Kingdom (UK), details of the same are given below:

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