Ramkrishna Forgings Limited
Ramkrishna Forgings Limited Fundamental Analysis
Ramkrishna Forgings Limited (RKFORGE.BO) shows weak financial fundamentals with a PE ratio of 161.90, profit margin of 1.53%, and ROE of 2.01%. The company generates $39.7B in annual revenue with moderate year-over-year growth of 8.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RKFORGE.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakRKFORGE.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateRKFORGE.BO shows balanced valuation metrics.
Growth Score
ModerateRKFORGE.BO shows steady but slowing expansion.
Financial Health Score
ExcellentRKFORGE.BO maintains a strong and stable balance sheet.
Profitability Score
WeakRKFORGE.BO struggles to sustain strong margins.
Key Financial Metrics
Is RKFORGE.BO Expensive or Cheap?
P/E Ratio
RKFORGE.BO trades at 161.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RKFORGE.BO's PEG of -2.76 indicates potential undervaluation.
Price to Book
The market values Ramkrishna Forgings Limited at 3.20 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 24.44 times EBITDA. This signals the market has high growth expectations.
How Well Does RKFORGE.BO Make Money?
Net Profit Margin
For every $100 in sales, Ramkrishna Forgings Limited keeps $1.53 as profit after all expenses.
Operating Margin
Core operations generate 15.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.01 in profit for every $100 of shareholder equity.
ROA
Ramkrishna Forgings Limited generates $0.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ramkrishna Forgings Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Ramkrishna Forgings Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RKFORGE.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
161.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.89
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.06
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How RKFORGE.BO Stacks Against Its Sector Peers
| Metric | RKFORGE.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 161.90 | 26.71 | Worse (Expensive) |
| ROE | 2.01% | 1311.00% | Weak |
| Net Margin | 1.53% | -29317.00% (disorted) | Weak |
| Debt/Equity | 0.89 | 0.75 | Neutral |
| Current Ratio | 1.06 | 10.53 | Neutral |
| ROA | 0.88% | -1537638.00% (disorted) | Weak |
RKFORGE.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ramkrishna Forgings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
199.06%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
3760.23%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-145.86%
Industry Style: Cyclical, Value, Infrastructure
Declining