Ramkrishna Forgings Ltd (RKFORGE) AI Stock Analysis

Ramkrishna Forgings Ltd

(NSE:RKFORGE)

Select Model

Rating:39Underperform

Price Target:INR 615.00▼(-4.82% Downside)

Action:downgraded

Date:10/29/26

The overall score is severely depressed by a dramatic collapse in profitability, with net margins falling to 1.7% and ROE to 2.2%, despite strong historical revenue growth. This is compounded by negative free cash flow, a bearish technical setup with the price below key moving averages, and an unsustainably high P/E ratio of 110.3 given the earnings decline.

Positive Factors

Long-term Revenue ExpansionStrong multi-year revenue expansion indicates that Ramkrishna Forgings has increased the scale of its business and maintained demand across its served markets. Although recent growth has moderated, the established revenue base provides a platform for future operating leverage and continued participation in automotive and industrial demand.

Negative Factors

Cooling Growth and Earnings DeclineSlower recent revenue growth combined with a sharp FY26 net-income decline indicates that expansion is not currently translating into stable earnings. Persistent weakness in profitability conversion could reduce internally generated capital, constrain reinvestment, and make future results more sensitive to production volumes and product mix.

Ramkrishna Forgings Ltd (RKFORGE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 117.85B
Dividend Yield: 0.15%
Average Volume (3M): 38.49K
Price to Earnings (P/E): 109.8
Beta (1Y): 1.38
Revenue Growth: 25.19%
EPS Growth: -38.28%
Country: India
Employees: 3,180
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

Ramkrishna Forgings Ltd Business Overview & Revenue Model

Company Description

Established in 1981 and headquartered in Kolkata, India, Ramkrishna Forgings Limited stands as a prominent manufacturer and global supplier of a wide array of open and closed die forgings. The company's products are crafted from various materials, in...

How the Company Makes Money

RKFORGE makes money by manufacturing and selling forged (and often machined/finished) metal components to customers, with revenue recognized primarily from the sale of these products. Key revenue streams typically include (1) supply of components to...

Ramkrishna Forgings Ltd Financial Statement Overview

Summary

Revenue growth remains strong, but profitability has collapsed with net margin falling to 1.7% and ROE to 2.2%. Negative free cash flow and weak debt coverage further strain financial health, justifying a score at the bottom of the range.

Income Statement

35Negative

Balance Sheet

40Negative

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	44.39B	42.38B	40.34B	37.05B	31.93B	23.20B
Gross Profit	16.61B	12.37B	17.64B	15.92B	13.75B	9.90B
EBITDA	7.04B	6.27B	5.70B	7.73B	7.04B	5.17B
Net Income	1.07B	717.97M	4.15B	2.91B	2.48B	1.98B
Balance Sheet
Total Assets	0	71.78B	65.57B	53.08B	37.30B	34.84B
Cash, Cash Equivalents and Short-Term Investments	1.66B	1.66B	290.49M	2.28B	555.92M	1.21B
Total Debt	0	24.49B	21.26B	12.07B	13.33B	16.33B
Total Liabilities	-32.90B	38.88B	35.20B	26.24B	24.09B	24.05B
Stockholders Equity	32.90B	32.90B	30.37B	26.84B	13.22B	10.78B
Cash Flow
Free Cash Flow	-4.90B	-2.73B	-11.06B	319.24M	3.89B	-2.57B
Operating Cash Flow	-53.92M	6.50B	-1.29B	6.21B	7.45B	430.57M
Investing Cash Flow	-4.82B	-9.37B	-9.14B	-11.17B	-2.99B	-3.54B
Financing Cash Flow	5.08B	4.33B	8.86B	6.25B	-4.38B	2.80B

Ramkrishna Forgings Ltd Technical Analysis

Technical Analysis SentimentNeutral

Last Price646.15

Price Trends

50DMA699.70Negative

100DMA657.51Negative

200DMA601.40Positive

Market Momentum

MACD-17.94Positive

RSI44.46Neutral

STOCH65.76Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RKFORGE, the sentiment is Neutral. The current price of 646.15 is below the 20-day moving average (MA) of 670.43, below the 50-day MA of 699.70, and above the 200-day MA of 601.40, indicating a neutral trend. The MACD of -17.94 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 65.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RKFORGE.

Ramkrishna Forgings Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RKFORGE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:SKFINDIA	70Neutral	INR 68.90B	32.92	―	2.88%	-38.60%	-60.08%
IN:TIIL	66Neutral	INR 58.50B	17.25	―	0.77%	12.39%	33.51%
IN:HARSHA	65Neutral	INR 37.75B	24.38	―	0.36%	20.22%	69.59%
IN:TIMKEN	65Neutral	INR 214.53B	47.31	―	0.17%	18.97%	-0.31%
IN:STERTOOLS	56Neutral	INR 7.25B	59.95	―	2.66%	-9.28%	-46.61%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RKFORGE	39Underperform	INR 117.71B	109.83	―	0.15%	25.19%	-38.28%

* General Sector Average

Performance Comparison

IN:RKFORGE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RKFORGE	Ramkrishna Forgings Ltd	646.15	104.87	19.37%
IN:HARSHA	Harsha Engineers International Ltd.	414.60	12.25	3.05%
IN:SKFINDIA	SKF India Limited	1393.70	-683.40	-32.90%
IN:STERTOOLS	Sterling Tools Limited	199.40	-104.37	-34.36%
IN:TIIL	Technocraft Industries (India) Limited	2580.05	157.52	6.50%
IN:TIMKEN	Timken India Limited	2852.10	-204.93	-6.70%

Ramkrishna Forgings Ltd Corporate Events

Ramkrishna Forgings Sets October 30 Earnings Call for Q2 and H1 FY27

Oct 27, 2026

Ramkrishna Forgings Limited has scheduled an earnings and conference call with analysts and investors on Friday, 30 October 2026, at 6:00 p.m. IST. The call will focus on discussing the unaudited financial results for the second quarter and first hal...

Ramkrishna Forgings Boosts Equity Capital with Rs 149.9 Crore Warrant Conversion

Sep 24, 2026

Ramkrishna Forgings Limited has allotted 3.4 million equity shares following the conversion of an equal number of preferential warrants previously issued to investor Chaitanya Jalan at a warrant issue price of Rs 588 each. With the receipt of the rem...

Ramkrishna Forgings Plans Investor Meetings in Mumbai

Sep 16, 2026

Ramkrishna Forgings Limited has scheduled a series of group meetings with analysts and institutional investors in Mumbai, beginning on 21 September 2026 at 10:00 A.M. onwards. The company has clarified that these interactions will be physical meeting...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Ramkrishna Forgings Ltd AI Stock Analysis