the market valuation ¥4,253.06 Cr, Ramkrishna Forgings Ltd operates in the industrial industry. The company supplies industrial equipment for railway carriages and wagons. In India, it is a trusted brand by OEMs such as TATA Motors, Ashok Leyland, VE Commercial and Daimler. In the international market, Volvo, Mack Trucks, Iveco and Ford are major manufacturers. In addition, we supply Tier 1 axle manufacturers such as Dana, Sisamex, Meritor and American Axles worldwide. In addition, we supply the automotive, rail, agricultural equipment, bearings, oil and gas, power, construction, earthmoving and mining industries in India and other countries.
In announcing its third-quarter results on Friday, the company notified the stock exchange: 0.50 per share at Rs. Two each in fiscal 2022-23. Such dividends will be paid within 30 days from the date of declaration. The same goes for his TDS. The Board of Directors has determined Tuesday, January 31, 2023 as the record date for the purpose of paying the third interim dividend for the fiscal year 2022-23 to eligible shareholders. ”
The company generated a consolidated net profit of Rs. $6.104 billion in Q3FY23 as opposed to Rs. $45.35 billion in the year-ago quarter, up 35% year over year. Compared to reported net sales in the third quarter of 2022, ¥$601.32 million, the company posted net sales ¥In the quarter ended December 2022, it stood at INR 777.48 crore, registering a growth of 29% year-on-year. compared to ¥141.18 Cr recorded in the same quarter last year, the company reported EBITDA ¥$17.299 billion in the third quarter of 2023, reflecting 23% year-over-year growth.
Ramkrishna Forgings said in the financial statement: The Board of Creditors has approved a resolution to acquire JMT Auto, one of the largest auto parts makers in the eastern region and one of the company’s great expertise in the automotive sector. The acquisition is subject to obtaining the necessary approvals from the President of the National Corporate Law Court of New Delhi. ”
Commenting on the results, Naresh Jalan, Managing Director of Ramkrishna Forgings Limited said: These efforts have enabled him to increase operating revenue by 24% year over year. Our global geographic outreach has helped us secure new orders and further strengthen our orders. In his first nine months of FY23, he won a contract worth Rs. Rs 774.7 crore from 8 contracts spread across various regions including North America and Europe. As of 31 December 2022, total debt has been reduced by 23% and is now at Rs. 1,286,890,000 rupees. We will continue to focus on debt reduction, aiming for debt-free management by FY2013. ”
“The commercial vehicle segment has experienced steady growth following the holiday season due to high fleet utilization resulting from increased economic and infrastructure activity. Overall is expected to continue to perform well, and we plan to expand and diversify the company with the acquisition of Tsyo & JMT Auto, resulting in increased size and market reach. focuses on a customer-centric approach to provide advanced, value-added products and maintain a strong market share around the world,” he added.
After the third quarter 2023 financial results, a research analyst at Sharekhan said: ¥40-45 billion rupees for FY23E and FY24E with potential earnings of ¥It has a peak capacity utilization of 5,000 cr and aims to maintain an EBIDTA margin of 22%. RKFL seeks to increase its non-automotive revenue mix to 30% (currently 19%) and revenue contribution from the EV segment to 3-3.5% (currently 2%). Management is optimistic about the export business and expects export earnings to grow by 15-20% in 2024. RKFL has strategically built its prospects for inorganic growth with a firm plan for organic growth driven by a healthy response from export markets. RKFL has acquired his 51% stake in TSUYO to expand his EV product portfolio and a bid has been accepted to turn around JMT Auto. Due to its ability to offer its customers an attractive value proposition, RKFL expects to capture market share internationally. The stock is available at an attractive valuation multiple of 9.7x P/E and 5.3x EV/EBITDA in fiscal 2025. Repeat the buy valuation of the stock with a modified target price (PT) to Rs. 329.”
Anand Rathi Research Analyst said: Growth was driven by strong sales volumes. Management continues to expect domestic growth and exports to outperform the industry in the near term despite recession concerns. The order book is healthy with quarterly additions. As we expect strong growth in commercial vehicles, we maintain our purchase at a revised TP of Rs 309 (13 times his in FY25). ”
On Friday, shares of Ramkrishna Forgings Limited closed at the NSE. ¥266.10 level, down 4.38% from the previous close ¥278.30. The stock recorded a total volume of 1,666,289 shares compared to a 20-day average volume of 572,510 shares. On January 19, 2023, the stock reached his 52-week high of Rs. Rs 285.00 and his 52 week low. 146.00. (June 20, 2022). If the stock hits the target price specified by the aforementioned brokerage firm, it will hit a new one-year high.
The views and recommendations above are those of the individual analyst or brokerage firm and not those of Mint.
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