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Ramkrishna Forgings Ltd

NSE: RKFORGE BSE: 532527

466.60

(-4.38%)

Tue, 07 Apr 2026, 03:53 pm

Ramkrishna Forgings Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (8.6x coverage).
  • Ramkrishna Forgings's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Ramkrishna Forgings's dividend is below the markets top 25% of dividend payers in India (3.08%).

health

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Pros

  • Ramkrishna Forgings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ramkrishna Forgings is profitable, therefore cash runway is not a concern.
  • Ramkrishna Forgings is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1x debt.
  • Ramkrishna Forgings's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (175% vs 96.3% today).
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Cons

  • Debt is not well covered by operating cash flow (15.5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
  • Ramkrishna Forgings's level of debt (96.3%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The tenure for the Ramkrishna Forgings board of directors is about average.
  • Naresh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The average tenure for the Ramkrishna Forgings management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Naresh's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Ramkrishna Forgings is not covered by any analysts.
    • Ramkrishna Forgings has significant price volatility in the past 3 months.

    past

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    Pros

    • Ramkrishna Forgings's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
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    Cons

    • Ramkrishna Forgings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Ramkrishna Forgings used its assets less efficiently than the IN Metals and Mining industry average last year based on Return on Assets.
    • Ramkrishna Forgings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Ramkrishna Forgings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Ramkrishna Forgings's 1-year earnings growth is negative, it can't be compared to the IN Metals and Mining industry average.

    value

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    Pros

    • Ramkrishna Forgings is good value based on assets compared to the IN Metals and Mining industry average.
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    Cons

    • Ramkrishna Forgings's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Ramkrishna Forgings's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Ramkrishna Forgings is overvalued based on earnings compared to the IN Metals and Mining industry average.
    • Ramkrishna Forgings is overvalued based on earnings compared to the India market.
    • RKFORGE underperformed the Metals and Mining industry which returned -28.6% over the past year.
    • RKFORGE underperformed the Market in India which returned -14.5% over the past year.
    • NSEI:RKFORGE is up 2.1% underperforming the Metals and Mining industry which returned 7.5% over the past month.
    • NSEI:RKFORGE is up 2.1% underperforming the market in India which returned 8% over the past month.

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