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Ramkrishna Forgings Limited (RKFORGE) Fair Value & Analysis

Industrials · IN · Market cap ₹105B

RF Ramkrishna Forgings Limited RKFORGE · NSE
Price₹755.00
Fair Value₹82.94
Upside-89.0%
Quality30/100
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Expensive Growth
Thin margins · 1.7% net margin
Low debt · negative free cash flow
0.18% dividend yield
Trails peers (3/13)
Narrow moat 27/100
Evidence: High Range ₹62.21 – ₹103.68 Share as image

Fair value as of: Aug 18, 2026

From 16 valuation models · updated today

Share price +32.9% over the past month.

Below-average quality, and screening another 89% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (₹103.68). The favourable scenario is already priced in.
  • Weak quality (30/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

₹1,043 ₹112.52 Fair Value ₹82.94 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 18, 2026.

How to read this chart

60‑month range ₹112.52 – ₹1,043 · fair‑value band ₹62.21 – ₹103.68 · the ₹755.00 price screens above the ₹82.94 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 18, 2026.

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Analysis

Ramkrishna Forgings Limited (RKFORGE) currently trades at ₹755.00, while our model-based Fair Value estimate is ₹82.94, implying the stock looks roughly 89.0% overvalued today. The Quality Score stands at 30/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Ramkrishna Forgings Limited generated revenue of ₹42.4B at a net margin of 1.7%. Revenue grew 28.5% year over year. It earns a return on equity of 2.3%. Net debt stands at ₹22.9B. Fundamentals as of Aug 18, 2026

Our scenario range runs from ₹62.21 (bear case) to ₹103.68 (bull case); at ₹755.00, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 64% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -59% fair-value upside, at -89%, RKFORGE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Note: the current price implies far more future growth than the conservative anchors of our models allow (base growth is deliberately capped, we do not regard such extreme rates as sustainable). Our models are not designed for expectations this high; that is why the individual models scatter extremely (₹16.03 to ₹379.71). Read the values as a conservative anchor, not as a price target.
Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹127.85 ₹121.52 ₹96.75 76
ROIC Compounder ₹66.17 ₹90.52 ₹111.82 72
Gordon GGM ₹9.14 ₹19.01 ₹30.16 70
All 16 models by family
Earnings-Based
Graham-Dodd ₹26.86 ₹177.26 ₹248.16 54
Lynch FV ₹51.70 ₹73.86 ₹96.01 50
PEG = 1.0 ₹51.70 ₹73.86 ₹96.01 46
EPV ₹66.17 ₹90.52 ₹111.82 59
Dividend Discount
Gordon GGM ₹9.14 ₹19.01 ₹30.16 70
DDM Multi-Stage ₹9.14 ₹16.03 ₹19.95 61
Multiples
P/E Multiple ₹62.21 ₹82.94 ₹103.68 63
P/S Multiple ₹50.36 ₹67.14 ₹83.93 58
P/B Multiple ₹50.36 ₹67.14 ₹83.93 55
EV/EBIT ₹137.38 ₹209.82 ₹282.25 53
EV/EBITDA ₹264.80 ₹379.71 ₹494.61 54
EV/Revenue ₹75.18 ₹141.64 ₹208.11 43
Asset-Based
NCAV (Graham) ₹90.50 ₹121.27 ₹181.01 50
Economic Profit
Residual Income ₹127.85 ₹121.52 ₹96.75 76
ROIC Compounder ₹66.17 ₹90.52 ₹111.82 72
Growth Earnings
Growth-Adj P/E ₹72.24 ₹103.19 ₹134.15 68

Widest divergence: Asset-Based (₹121.27) versus Dividend Discount (₹16.03). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹42.4B
Revenue growth (YoY) +28.5%
Net margin 1.7%
Return on equity 2.3%
Free cash flow −₹2.7B FY2026
P/E ratio 191.6
More key figures
Operating margin 9.8%
EPS (TTM) ₹3.94
Dividend yield 0.2%
EPS growth (YoY) +24.4%
Net debt ₹22.9B FY2026

Figures from reported company fundamentals · as of Aug 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 30/100

Of which business quality 35 · Market factors (momentum, volatility) 75

Profitability 27
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 40
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 0
Disciplined investing over empire-building
Low Volatility 78
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 84
Distance to the 52-week high (market factor)
Net Issuance 57
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ramkrishna Forgings Limited engages in the manufacture and sale of forged components for automobiles, railway wagons and coaches, and engineering parts in India and internationally. It operates in two segments, Forging Components and Others.

Full company description

Ramkrishna Forgings Limited engages in the manufacture and sale of forged components for automobiles, railway wagons and coaches, and engineering parts in India and internationally. It operates in two segments, Forging Components and Others. The company's products portfolio includes beam, knuckle, steering arm, tie-rod-arm, sector shaft, front hub, crankshaft, camshaft, connecting rod, piston, pitman arm, BC lever assembly, mounting bracket, yoke, UJ cross, transmission gear and shaft, crown wheel, pinion, differential case and case cover, differential gear and pinion, spindle, rear axle shaft, spider, helical gear, tube flange and shaft, and tube yoke products. It also offers bucket, backhoe bucket, shovel, track line and roller, bucket tooth, pivot pin, prop shaft, and bearing centre products; and wing nut, valve bonet, T-bolt socket joint, and tooth crusher hammer products. In addition, the company provides bogie frame and bolster, screw coupling, hanger, draw gear assembly, anti roll bar assembly, control arm support, center pivot pin, centering disc, traction center, and guide products. Further, it offers tractor-trailer products, such as trailer axle, air and mechanical suspension, landing leg, and bolton and weldable king pin products; as well as engages in the sanitization and cargo, and tour and travel businesses. The company offers its products for various industries and sectors, including automotive, earth moving and mining, farm equipment, power, construction, general engineering, railways, and oil and gas, as well as for original equipment manufacturers. Ramkrishna Forgings Limited was incorporated in 1981 and is headquartered in Kolkata, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Ramkrishna Forgings Limited reported revenue of ₹42.4B in FY2026 versus ₹23.2B in FY2022, a compound +16.3%/yr. Reported net income was ₹718M in FY2026, compounding −22.4%/yr from FY2022.

Growth Quality 52/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹42.4B
Latest YoY
+5.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+9.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+26.9%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+21.1%
Revenue +16.3%/yr
FY22 ₹23.2B
FY23 ₹31.9B
FY24 ₹37.0B
FY25 ₹40.3B
FY26 ₹42.4B
Net income −22.4%/yr
FY22 ₹2.0B
FY23 ₹2.5B
FY24 ₹2.9B
FY25 ₹4.2B
FY26 ₹718M

RKFORGE screens 89% overvalued. Compare with Carpenter Technology Corporation →

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Cite: Fair Value Calculator (2026). "Ramkrishna Forgings Limited Fair Value". https://www.fairvalue-calculator.com/stock/RKFORGE

Peer Group

Metal Fabrication · 247 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 30 · Bottom 25%
Fair Value upside −89% · Bottom 25%
Return on equity (TTM) 2% · Below median
Return on assets 3% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 10% · Above median
Revenue growth 29% · Top 25%
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.49× · Higher than 75% of peers

Valuation Multiples vs Metal Fabrication median · lower = cheaper

P/E (TTM) 191.6× · Pricier than 75% of peers
P/B 3.18× · Pricier than 75% of peers
P/S (TTM) 2.47× · Pricier than median
EV/EBITDA 18.5× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 34
PAST 9 · sector 19
HEALTH 75 · sector 95
DIVIDEND 4 · sector 28

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is Ramkrishna Forgings Limited (RKFORGE) overvalued or undervalued?
As of Aug 18, 2026, our model estimates a fair value of ₹82.94 versus a price of ₹755.00, about −89% (overvalued).
What is the fair value of RKFORGE?
Our model-based fair value for Ramkrishna Forgings Limited is ₹82.94 (as of Aug 18, 2026), built from audited fundamentals. The current price is ₹755.00.
What is the quality score of RKFORGE?
Ramkrishna Forgings Limited has a Quality Score of 30/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ramkrishna Forgings Limited (RKFORGE)?
Ramkrishna Forgings Limited reported trailing-twelve-month revenue of about ₹42.4B (latest available figure, as of Aug 18, 2026).
What is the net profit margin of RKFORGE?
The net profit margin of Ramkrishna Forgings Limited is about 1.7%, meaning it keeps roughly 1.7% of revenue as net income. Based on the latest reported figures.
Does Ramkrishna Forgings Limited pay a dividend?
Ramkrishna Forgings Limited currently shows a dividend yield of about 0.18% relative to its recent price (as of Aug 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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