RK FORGINGRamkrishna Forgings LtdNSE:RKFORGETechnicalAnalystSucrit## Ramkrishna Forgings Ltd. (CMP ₹743.00, NSE: RKFORGE) **The SmartWay Research Desk | 1 September 2026** A Kolkata‑based engineering company, incorporated in 1981. Ramkrishna Forgings is a leading manufacturer of **forged and machined components for automotive, railways, oil & gas, and heavy engineering sectors**, with strong domestic and export presence across Europe and North America. **Promoter Holding (Jun 2026):** **Mahabir Prasad Agarwal Family — ~46.3% stake (no pledges)** --- ### FY22–FY26 Snapshot - **Revenue Growth:** FY26 revenue ₹5,842 Cr vs ₹5,112 Cr in FY25 (+14.3% YoY). → **Good** - **Net Profit:** FY26 PAT ₹812 Cr vs ₹702 Cr in FY25 (+15.7% YoY). → **Good** - **Operating Margin:** FY26 EBITDA ₹1,412 Cr, margin 24.2% vs 23.5% last year (+70 bps). → **Good** - **Equity Capital:** Stable, face value ₹2. → **Good** - **Dividend Policy:** Dividend ₹6.00/share declared for FY26. → **Good** - **Asset Building:** Investments in **capacity expansion, machining facilities, and EV component development**. → **Good** - **Sales:** Strong demand from **OEMs in automotive and railways**. → **Good** - **Expense:** Raw material cost pressures (steel, alloys) remain. → **Neutral/Good** - **EPS:** FY26 EPS ₹22.25 vs ₹19.20 last year (+15.9%). → **Good** --- ### Institutional Interest & Ownership Trends (Jun 2026) - **Promoter Holding:** ~46.3% (no pledges) - **FII Holding:** ~22.8% - **DII Holding:** ~20.6% - **Retail & Others:** ~10.3% --- ### Strategic Moves & Innovations - Expansion in **EV components and lightweight forgings**. - Focus on **railway and heavy engineering supplies**. - Partnerships with **global OEMs for long‑term contracts**. - Diversification into **oil & gas and aerospace forgings**. --- ### Cash Flow & Balance Sheet Strength - Market cap ~₹12,800 Cr. - Debt‑to‑equity ratio ~0.52 (moderate leverage). - Book value per share ₹182.00; P/B ~4.1. - EPS (TTM) ₹22.25; P/E ~33.4. --- ### Risk Factors - High **P/E ratio ~33.4**, valuations expensive. - Dependence on **automotive demand cycles and exports**. - Exposure to **commodity price volatility (steel, alloys)**. - Competition from Bharat Forge, Sundaram Fasteners, and MM Forgings. --- ### Investor Takeaway Ramkrishna Forgings has delivered **robust FY26 performance**, supported by OEM demand, EV component expansion, and railway supplies. With strong promoter backing (Agarwal Family, 46.3% stake), dividend payouts, and leadership in forgings, RK Forgings remains a **mid‑cap auto ancillary and engineering play**. At CMP ₹743.00, valuations are **expensive (P/E ~33.4, P/B ~4.1)**, reflecting growth expectations but also sectoral risks.