IIFL Securities's Stock Idea: Buy Ramkrishna Forgings with Target Rs 938
IIFL Securities has issued a buy recommendation for Ramkrishna Forgings, with a target price of Rs 938 per share. As of June 21, the stock was trading at Rs 914.6, presenting a potential upside of 2.5%. The brokerage firm believes that the company's strong order book, cost optimization measures, and focus on value-added products will drive its future growth. Ramkrishna Forgings is a leading manufacturer of forged components for various industries, including automotive, energy, and railways.
About Ramkrishna Forgings:
Ramkrishna Forgings Limited (RKFL) is an automotive component manufacturing company incorporated in 1984 and is listed on the National Stock Exchange (NSE) of India. The company manufactures a range of forged and machined components for passenger vehicles, commercial vehicles, off-highway vehicles, and industrial applications. RKFL has manufacturing facilities in India and the United Kingdom, with a combined capacity of over 100,000 metric tons per annum. The company's products are exported to over 25 countries worldwide.
52 Week Price Trend:
Ramkrishna Forgings' CMP of Rs 914.6 reflects a significant increase of 70.86% from its 52-week low of Rs 252.85. However, it is still below its 52-week high of Rs 814.95. This suggests that the stock has potential for further growth but may face resistance at its previous high. Analysts recommend a cautious approach, considering the current market volatility and the company's historical performance.
Stratzy's MOST Analysis:
RKFORGE has been rated AAA by Stratzy's MOST framework, indicating the lowest fundamental risks. This rating is based on an assessment of the company's management, outlook, safety, and trend. RKFORGE has been evaluated as having strong management, a positive outlook, a safe financial position, and a favorable trend. This overall assessment suggests that RKFORGE is a company with a low likelihood of experiencing significant financial difficulties in the future.
Company's Fundamentals:
Ramkrishna Forgings (RKFORGE) is a publicly traded company on the National Stock Exchange of India (NSE). Its stock is valued at a price-to-earnings (PE) ratio of 43.75, indicating that investors are willing to pay 43.75 times the company's annual earnings per share for its stock. The stock's price-to-book (PB) ratio of 8.95 suggests that its market value is 8.95 times the value of its assets. Despite its high PE and PB ratios, RKFORGE offers a relatively low dividend yield of 0.26%, which may be less attractive to income-oriented investors.
Fundamental and Technical information provided in this blog were last updated on 21 Jun, 2024
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