Ramkrishna Forgings Limited is a leading manufacturer and supplier of closed die forgings of carbon and alloy steel, micro alloy steel and stainless-steel forgings which are supplied as forged plus heat treated plus machined and fully assembled condition as per the customer's requirement. The Company is a supplier to various sectors, such as automotive, railways, bearings, oil and gas, power and construction, earth moving and mining, both in India and overseas markets.
The company holds the position of India's 2nd largest forging player, demonstrating its significant market presence in the forging industry. Ramkrishna Forgings Limited was incorporated on November 12, 1981, as a Private Limited Company with the name 'Ramkrishna Forgings Private Limited'. On May 25, 1995, the Company was converted into a Public Limited Company and the name was changed to Ramkrishna Forgings Limited.
Ramkrishna Forgings Limited is an India-based integrated forging company primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons and coach and engineering parts. The Company operates through two segments: Forging components and Others. The Forging components segment produces and sells forged products comprising of forgings and machined automobile components.
The company's manufacturing capabilities have been significantly enhanced over the years. The Company commissioned a hollow spindle line, a press line with annual installed capacities of 10,200 tonnes & 17,000 tonnes respectively in 2020. In 2021, it commissioned a warm forging line with an annual installed capacity of 9,900 tonnes and fabrication facilities.
The automotive components manufactured by the company include front axle, engine, suspension and chassis, transmission and rear axle. It also manufactures critical components for the tractor and farm equipment industry. The Company is a critical safety item supplier for undercarriage, bogie and shell parts for railway passenger coaches and locomotives.
The company serves as a supplier to original equipment manufacturers like TATA Motors, Ashok Leyland, Volvo, Iveco, Scania, MAN and UD Trucks, among others. This diverse customer base across automotive and railway sectors provides stability to the company's revenue streams.
The company reported exceptional financial performance in Q4 FY25, with net profit rising 202.27% to ₹199.83 Crore in the quarter ended March 2025, as against ₹66.11 Crore during the previous quarter ended March 2024. However, sales declined 2.75% to ₹947.21 Crore in the quarter ended March 2025, as against ₹973.96 Crore during the previous quarter ended March 2024.
For the full year, net profit rose 42.52% to ₹415.03 Crore in the year ended March 2025, as against ₹291.21 Crore during the previous year ended March 2024. Sales rose 8.90% to ₹4,034.11 Crore in the year ended March 2025, as against ₹3,704.54 Crore during the previous year ended March 2024.
Ramkrishna Forgings Ltd has a market capitalization of ₹11,965 Crore as of June 2025. The company's revenue stands at ₹4,034 Crore with a profit of ₹415 Crore, and the stock is trading at 3.96 times its book value.
Ramkrishna Forgings has secured ₹710 Crore in new orders, primarily from the automotive sector, and is expanding operations in Mexico. The company aims for growth in the passenger car segment and has diversified its order base, enhancing its fabrication capabilities.
The company has issued 975,000 warrants convertible to equity shares to promoter, approved unanimously at an EGM held on June 30, 2025. RKFL Engineering Industry Private Limited was incorporated as a wholly-owned subsidiary of the Company effective on March 6, 2023.
The company is led by Chairperson Mahabir Prasad Jalan and Managing Director Mr. Naresh Jalan. Promoter holding in Ramkrishna Forgings Ltd stands at 43.13% as of March 2025.
The company has received an average target price of ₹801.5 from analysts, indicating a potential upside of 22.14% compared to the current price according to 6 analyst ratings. 66.67% of analysts recommend a 'BUY' rating for Ramkrishna Forgings Ltd.
The company's strong position in the forging industry, combined with its diversified customer base across automotive and railway sectors, positions it well for future growth. The recent financial performance demonstrates the company's ability to generate strong profits despite challenging market conditions, making it an attractive investment proposition for investors seeking exposure to India's manufacturing sector.
