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Release
August 2026 · rev 1
Opportunities PMS · Published
As at 31 Aug 2026 · IST₹ · ₹ cr · BSE 500 TRI
Present
Internal working platform. Published figures are extracted from the August 2026 source package and reviewed; reference prices and fundamentals are unlicensed working data, not for redistribution. Past performance is not indicative of future returns.
Company Atlas/Automobile/Ramkrishna Forgings
NSE: RKFORGE· AutomobileCyclical · Aug 26Small cap

Ramkrishna Forgings

Cyclical: post write-off recovery

Last close
₹714.65
29 Sept 2026 · reference
1D · 1M
+1.6% · −4.9%
price-only
Weight
2.1%
31 Jul 2026 · Aug rank 19
Thesis review
8 Sep 2026
Why We Own, p57
Coverage owner: Research (per book); latest results Q Jun-26Buoyant AIF I Top 30 Holdings - Aug 2026.pdf · p1Buoyant_Why_We_Own_What_We_Own_Sep2026.pdf (portfolio as of 31 July 2026) · p57Screener ↗Tijori ↗NSE ↗
OverviewBusiness & segmentsChartsFinancialsValuationThesisRisks & catalystsCompetitorsResearch & documents
What the company does

Ramkrishna Forgings · Metal Fabrication

Established in 1981, Ramkrishna Forgings Limited is a trusted supplier in Automotive, Railways, and Construction sectors. Known for quality and integrity, the company serves major OEMs in India and overseas.

Full profile (Yahoo)

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. 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, wheel coupling, transmission gear and shaft, crown wheel, pinion, differential case and case cover, differential gear and pinion, spindle, rear axle shaft, spider, tube flange and shaft, tube yoke, input cold forged shaft, and aluminium forgings. 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. The company offers 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.

Sector (Yahoo)
Industrials
Industry (Yahoo)
Metal Fabrication
Employees
3,180
Website
ramkrishnaforgings.com

Key people: Mr. Naresh Jalan (MD & Executive Director) · Mr. Lalit Kumar Khetan (CFO & Whole Time Director) · Mr. Sakti Prasad Senapati (Group Chief Operating Officer) · Mr. Rajat Subhra Datta (Chief Technical Officer) · Mr. Rajesh Mundhra (Chief Risk Officer, Company Secretary & Compliance Officer) · Mr. Milesh Gandhi (Directof Marketing & Sales and Whole-time Director)

Who are the competitors of Ramkrishna Forgings?

Ramkrishna Forgings major competitors are CIE Automotive India, Maharashtra Scooters, Kirloskar Ferrous, Balu Forge Inds., Electrost Castings, Kirloskar Industries, Steelcast. Market Cap of Ramkrishna Forgings is ₹13,327 Crs. While the median market cap of its peers are ₹6,242 Crs.

Is Ramkrishna Forgings financially stable compared to its competitors?

Ramkrishna Forgings seems to be less financially stable compared to its competitors.Altman Z score of Ramkrishna Forgings is 3.47 and is ranked 6 out of its 8 competitors.

Snapshot and what to watch · Tijori · 23 Sep 2026
  • Ramkrishna Forgings makes closed-die steel forgings, rolled rings, castings, aluminium forgings, trailer axles and rail wheels via its 51% rail-wheel joint venture.
  • It sells mainly to automakers at home and abroad. Railways, mining, earthmoving and farm makers buy the rest, including undercarriage assemblies for Vande Bharat trains.
  • It grew beyond forgings by adding castings through bought companies now grouped in its casting subsidiary.
  • Profit rests on domestic and export auto forgings. Railways, castings and farm and earthmoving equipment are smaller. Higher export prices mean mix moves margins.
  • It holds a 20-year rail-wheel supply deal. Per management, all contracts pass through steel and currency costs.
  • It is adding rail-wheel capacity and a press line for exports. Its mix is moving toward railways, castings, passenger and electric vehicles.
  • Margins reached ~18% in Q1FY27 from ~15% in FY26. This followed two quarters without one-offs after FY25 collapse.
  • India Ratings puts net leverage at 4.6 times. It flags stretched working capital. Management guides a ₹400–500Cr debt cut in FY27.
  • FY27 depends on exports recovering and the rail-wheel plant starting. Management guides ~₹5,000Cr revenue and margins 1–1.5 points above Q4FY26.
  • Past inventory overstatement, continuing bank-statement mismatches and promoter share pledges keep governance risk high.

Yahoo profile 23 Sept 2026 · Tijori 23 Sept 2026

Segments

Revenue mix and market share

Product Wise Break-Up
  • Forging components100.0%
Location Wise Break-Up
  • India67.7%
  • North America20.3%
  • Europe11.7%
  • Others0.3%
Customer Segment
  • Automotive77.1%
  • Others7.2%
  • Railways6.0%
  • Mining5.7%
  • Exports4.0%
Operating Profit Break-Up
  • Forging Components100.0%
OEM vs Aftermarket
  • OEMs89.0%
  • Aftermarket11.0%
Asset Break-Up
  • India97.5%
  • Others2.5%

Latest reported mix as compiled by Tijori from company disclosures; percentages of revenue.

Operating metrics

Company-reported KPIs (Tijori) · latest quarter

As the company reports them. They can differ from the ratio table on the Financials tab, which uses Tijori's own definitions (for example NIM on average total assets rather than on interest-earning assets); the Cross-check panel there lines both up.

Capacity Utilization - Forging64 % 2026-06
Quarterly Sales Volume - Casting & Forging51,747 Tonnes 2026-03
Manufacturing Capacity - Forging70,350 MTPA 2026-06
Capacity Utilization - Ring Rolling Line127 % 2026-06
Capacity Utilization - Press Facility60 % 2026-06
EBITDA/Tonne - Casting & Forging47,865.6 Rs/ Tonne 2024-12
R&D as a % of Total Sales0.23 % 2026-03
Business model

How the company earns

Ramkrishna Forgings is a Jamshedpur-based forgings maker (one of India's largest) supplying axle, transmission and chassis forgings mainly to commercial-vehicle OEMs in India, North America and Europe, and diversifying into railways (51:49 forged-wheel JV with Titagarh, 2.28 lakh wheels/yr, 20-year Indian Railways contract), castings, oil & gas, passenger-vehicle and non-ferrous aerospace forgings. Exports were 32% of Q1FY27 revenue (N. America Rs 222 cr, Europe Rs 128 cr); capacity utilisation ~68%.

Economics and valuation note (book)

TTM PE 112x is optically inflated by the FY26 earnings trough (PAT -78%); 5-yr stock price CAGR not captured; P/B 3.9x vs ROE of 2.5% (3-yr avg 9.75%) - the stock is priced on FY28 recovery (Buoyant 37.8x FY28e). EV/EBITDA n.m.; dividend yield 0.1%.

Competitive position · why this and not peers
Bharat ForgeBharat Forge trades at 93.5x TTM PE / 9.8x P/B with ROE 12% and a Rs 90 cr Q1FY27 loss on Rs 7,309 cr debt; RKFL at 3.9x P/B offers more torque to a CV/export recovery plus the railway wheel option.
Happy ForgingsHappy Forgings is the higher-quality name (ROE 15%, net debt Rs 330 cr, Q1 PAT +42%) but is priced for it at 64x TTM PE and 9.9x P/B vs RKFL 3.9x P/B; RKFL is the mean-reversion trade, Happy the compounder.
Segment economics

Reported revenue mix

Product Wise Break-Up

share of revenue, %
  • Forging components
    100.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Location Wise Break-Up

share of revenue, %
  • India
    67.7%
  • North America
    20.3%
  • Europe
    11.7%
  • Others
    0.3%
  • Rest of the World
    0.0%
  • Asia
    0.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Customer Segment

share of revenue, %
  • Automotive
    77.1%
  • Others
    7.2%
  • Railways
    6.0%
  • Mining
    5.7%
  • Exports
    4.0%
  • Exports Incentive
    0.0%
  • Oil & Gas
    0.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Operating Profit Break-Up

share of revenue, %
  • Forging Components
    100.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

OEM vs Aftermarket

share of revenue, %
  • OEMs
    89.0%
  • Aftermarket
    11.0%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Asset Break-Up

share of revenue, %
  • India
    97.5%
  • Others
    2.5%

Share of revenue as disclosed in filings (Tijori normalisation). Segment profit measure: not disclosed in this source — segment EBIT/EBITDA/PBT are not shown rather than estimated. Eliminations and unallocated costs not available here.

Industry cycle

Automobile chapter

Automobile — 4.4%: a Value leader and two cyclical component makers

FY26 was a record year for Indian autos: 2.83 crore wholesale units (+10.4%), two-wheelers +10.7% with scooters +18.5%, passenger vehicles +7.9%, commercial vehicles +12.6% and exports +24% to 66.5 lakh units — SIAM credits the September 2025 GST cuts and 125 bp of repo cuts. Retail momentum continued into August 2026 (FADA +18%, PVs above 4 lakh in an August for the first time), although the base was soft. Two structural shifts matter to how we are positioned. First, exports: Bajaj Auto ships around half its two- and three-wheelers abroad and Indian component makers are winning global platforms as the world de-risks from China. Second, the powertrain mix is changing faster than anyone expected — in August 2026 alternative fuels (CNG 25%, hybrid 9%, EV 7.6%) overtook petrol in passenger-vehicle retail for the first time and EV registrations hit 3.5 million in FY26 — which rewards the players with the broadest technology portfolio, not the incumbents. We hold the sector through one Value large cap (Bajaj Auto, 34x FY27E, 30% ROE, ~50% of units exported, a net cash balance sheet and the Chetak EV scooter now number two in the market) and two small-cap Cyclicals bought at earnings troughs (RK Forgings after a one-off inventory write-off; Varroc after its debt and Europe restructuring).

Datapoints the team can quote
  • FY26 wholesales 2.83 cr (+10.4%): PV 46.4 lakh (+7.9%), 2W 2.17 cr (+10.7%, scooters +18.5%), CV 10.8 lakh (+12.6%), exports 66.5 lakh (+24%) — SIAM, Apr-2026
  • FADA Aug-2026 retail +18%: PV 4.02 lakh (+16.1%), 2W 17.15 lakh (+19.7%), CV +14.5%; base flattered by pre-GST-cut Aug-2025 — FADA
  • Alternative fuels (CNG 25.3% + hybrid 9.0% + EV 7.6% = 42%) overtook petrol (40.9%) in PV retail in Aug-2026; 2W EV share 10.7% — FADA
  • EV registrations 3.5 mn in FY26 vs 1.9 mn in FY25 — SIAM/VAHAN
What we deliberately do not own

Maruti is the PV leader but at 30x prices a recovery that CNG/hybrid mix has already delivered, and it is the most exposed to small-car weakness; Tata Motors is a JLR story; M&M is the best-run OEM but at 30x+ after a 3x move we prefer Bajaj's export optionality and net cash. Hero MotoCorp is losing share to scooters and EVs; TVS and Eicher are great franchises at 40–45x. Among components, Bharat Forge carries a defence multiple and Motherson a European-auto cycle we do not want.

Market position

Market share (where tracked)

UnavailableNo market-share series in the fundamentals source.
Sector datapoints

From the one-pager

  • Indian CV cycle: FY26 retail volumes grew 12.4% (LCV) and 10.1% (M&HCV); ICRA forecasts FY27 CV wholesale growth of only 4-6% (M&HCV trucks 1-3%, LCV 6-8%, buses 7-9%) - a mature, late-cycle market (Business Standard, Jun-2026).
  • May-2026 CV wholesales +13.5% YoY but retail -18.3% MoM; headwinds cited: higher fuel prices, financing delays, commodity inflation.
  • Exports: RKFL FY26 export revenue -19.9% to Rs 1,187 cr on weak North American Class-8 demand and tariff uncertainty; Q1FY27 exports +11% YoY signalling bottoming.
  • Indian Railways wheel localisation: RKFL-Titagarh JV holds a 20-year contract for up to 80,000 wheels/yr of the 2.28 lakh capacity (Whalesbook, Jul-2026).