Ramkrishna Forgings Ltd.
NSE: RKFORGERamkrishna Forgings Ltd.: A 30-second snapshot
Ramkrishna Forgings (RKFORGE) is an NSE-listed auto-sector forging manufacturer trading at ₹573.95 as of the run date, essentially flat over 12 months (-0.29%) and above both the 50-DMA (₹550) and 200-DMA (₹547). A trailing PE of 144.9 against a profit margin of 1.69%, ROE of 2.27%, and debt-to-equity of 74.4 reflect the gap between current earnings and market-implied expectations; the forward PE of 26.9 signals that consensus projects a meaningful improvement in profitability.
P/E
144.9
Forward P/E
26.9
ROE
+2.3%
Debt / Equity
74.42
Profit Margin
+1.7%
Div. Yield
+0.3%
5Y ROE > 15%
1/5
5Y FCF > 0
2/5
Quality
36/100
News
8 headlines · 4 positive · 2 negative
RK Forge records 72% YoY fall in Q4 PAT - Business Standard
Business Standard
RKFORGE: Q4 FY26 delivered double-digit revenue growth and margin expansion, with strong order wins and capacity ramp-up - TradingView
TradingView
RKFORGE: Strong revenue and profit growth, interim dividend declared, and key non-recurring gains recognized - TradingView
TradingView
Ramkrishna Forgings Limited Declares First Interim Dividend for the Financial Year 2025-26 - marketscreener.com
marketscreener.com
Ramkrishna Forgings Clears FY26 Results, Declares Interim Dividend and ESOP Allotment - TipRanks
TipRanks
Recent context
- ·Q4 FY26 results (reported May 2026) showed a 72% YoY decline in PAT, the sharpest quarterly earnings drop in recent news coverage; the same quarter saw double-digit revenue growth and an interim dividend, creating a split picture between revenue trajectory and bottom-line delivery.
- ·The company declared its first interim dividend for FY2025-26, accompanied by ESOP allotment — governance actions that are on record but occur against the backdrop of a 144.9 trailing PE and rising debt.
- ·At 4 analysts covering the stock with a mean rating of 2.75 on a 1–5 scale (lower = more constructive), the analyst base is small; a 16.87% drawdown from the 52-week high reflects the stock is off its peak even as the price remains above medium-term moving averages.
Strengths
- +5-year revenue CAGR of 28.5% and earnings CAGR of 24.4% indicate the company has scaled its top and bottom line over the medium term, even if current-period margins are compressed.
- +Price currently sits above both the 50-DMA (₹550) and 200-DMA (₹547), with RSI at 49.3 (neutral) — no extreme momentum readings in either direction.
- +Nearest support cluster at ₹521–₹522 is approximately 9% below the current price, providing a quantifiable reference for near-term price structure.
- +An interim dividend was declared for FY26, and management commentary cited order wins and capacity ramp-up — facts on record for investors monitoring operational progress.
Weaknesses
- −D/E of 74.4 with a rising debt trend and FCF positive in only 2 of the available years represents the most material balance-sheet concern; interest servicing costs at this leverage level consume a significant portion of thin operating margins.
- −Trailing PE of 144.9 at a profit margin of 1.69% and ROE of 2.27% places current-period earnings well below the level required to justify the valuation without a significant recovery; Q4 FY26 PAT fell 72% YoY, indicating that recovery has not yet started.
- −Quality score of 30 ranks last (6th of 6) among Auto-sector peers; the peer median quality score is approximately 43 (Bajaj-Auto 55, Eicher 60, M&M 52, Maruti 31), highlighting the gap in fundamental quality.
- −ROE exceeded 15% in only 1 of the tracked years, with a consistency score of 16 — well below what sustained compounding would require; the absence of persistent capital efficiency is a structural concern separate from the cyclical earnings dip.
Open questions
- ?Does the 5-year revenue CAGR of 28.5% reflect structural demand in the forging supply chain, or is it sensitive to a small number of large OEM customers whose ordering cycles could reverse?
- ?At a D/E of 74.4 with a rising debt trend, what level of operating profit is required to maintain current debt-servicing capacity, and how does Q4 FY26 PAT compare to that threshold?
- ?The forward PE of 26.9 implies a large earnings uplift from the current trailing figure of 144.9 — what specific volume, margin, or order-book data from management guidance supports that trajectory?
- ?How does RKFORGE compare to listed peers specifically in the forgings and auto-components sub-segment (rather than the broader Auto index), where leverage ratios and capital intensity norms may differ from OEM assemblers?
Peer comparison: Auto
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RKFORGE | Ramkrishna Forgings Ltd.You're viewing | 144.9 | +2.3% | 30 |
| Industry avg | across 5 peers | 28.0 | +15.0% | 43 |
| EICHERMOT | Eicher Motors Ltd. | 36.0 | — | 60 |
| BAJAJ-AUTO | Bajaj Auto Ltd. | 27.0 | +28.1% | 55 |
| M&M | Mahindra & Mahindra Ltd. | 20.5 | +18.8% | 52 |
| MARUTI | Maruti Suzuki India Ltd. | 28.3 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹573.95
SMA 50
₹550.24
SMA 200
₹546.59
RSI (14)
49.3 (neutral)
From 52w high
-16.9%
1Y return
-0.3%
3M return
-0.1%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 74.4 is extreme for a non-bank manufacturer; debt trend is flagged as rising, and FCF was positive in only 2 of the tracked years — a combination that constrains the balance-sheet buffer if earnings disappoint.
- highTrailing PE of 144.9 against a profit margin of 1.69% and ROE of 2.27% indicates the market is pricing in a sharp earnings improvement that has not yet materialised; quality score of 30 places RKFORGE last (6th of 6) in its Auto peer set.
- mediumROE exceeded 15% in only 1 of the tracked years; consistency score is 16; the most recent headline reports a 72% YoY fall in Q4 FY26 PAT, indicating that thin earnings are not yet stabilising.
- lowNews sample totals 8 items — sufficient for broad tone but thin for event-risk assessment; two items published on the same day carry contradictory framings of Q4 results (72% PAT decline vs revenue growth and margin expansion).
Cross-section contradictions
- Forward PE of 26.9 implies the market prices in a large earnings recovery, while trailing PE of 144.9 at a 1.69% profit margin with rising D/E and only 2 FCF-positive years adds material uncertainty to that recovery path.
- News aggregate sentiment is positive (4 positive vs 2 negative out of 8 items), yet the single most data-rich headline — Business Standard on 2 May 2026 — reports a 72% YoY Q4 PAT fall; the aggregate label does not reflect the weight of that result.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days