Ramkrishna Forgings Share Price

The company released the standalone unaudited financial results for the second quarter of FY19 and the results indicate the following:

1. The total revenue of the company over the quarter was Rs.462.008 crore. This was an increase over the previous quarter when the total revenue was clocked at Rs.411.05 crore.
2. The total expenses incurred by the company over the second quarter of the year was pegged at Rs.412.18 crore and this was an increase from the first quarter when it was Rs.368.23 crore.
3. The profit after tax for the quarter was Rs.32.78 crore. This was an increase from the previous quarter when it was Rs.27.71 crore.

1. The basic earnings per share (not annualized) was Rs.10.06 and the diluted earnings per share (not annualized) was Rs.10.01.

Q1 Results FY19

The company released the statement of the unaudited standalone financial results for the first quarter of FY19 and the results indicate the following:

1. The company clocked a total revenue of Rs.411.05 crore over the first quarter of the year. The total revenue over the previous quarter was Rs.440.94 crore.
2. The total expenses incurred by the company over the quarter was Rs.368.23 crore and this was a decrease from the expenses in the preceding quarter which was clocked at Rs.390.77 crore.

1. The profit after tax for the quarter was Rs.27.71 crore and this was a decrease from the previous quarter when the same was Rs.34.31 crore.
2. The basic earnings per share (not annualized) was Rs.8.50 and the diluted earnings per share (not annualized) was Rs.8.46.

Annual Report 2017-2018

The company released the annual report for the financial year spanning 2017-2018, ending March 2018 and the audited standalone statement indicates the following:

1. The total revenue was Rs.1,457.52 crore. This was an increase from Rs.960.19 crore in the previous year.

1. The total expenses incurred by the company was pegged at Rs.1,323.30 crore. This was also an increase from the total expenses incurred over the preceding year at Rs.943.93 crore.
2. The profit after tax was Rs.94.66 crore and this was a huge increase over the profit after tax in the previous year when it was Rs.10.92 crore.
3. The basic earnings per share (not annualized) was Rs.30.15 and the diluted earnings per share (not annualized) was Rs.30.00.
4. The total worth of the assets of the company rose from Rs.1,117.74 crore at the close of FY17 to Rs.1,163.70 crore at the end of FY18.

Q4 Results FY18

The audited standalone financial results for the final quarter of the financial year spanning 2017-2018 indicates the following:

1. The total revenue was Rs.440.94 crore. This was an increase from the third quarter of the same year when the total revenue was Rs.399.91 crore.
2. The total expenses of the company was pegged at Rs.390.77 crore and this was an increase over the preceding quarter when expenses totaled Rs.357.22 crore.
3. The profit after tax for the quarter was Rs.34.31 crore. This was an increase over the previous quarter when it was Rs.27.73 crore.
4. The basic earnings per share (not annualized) was Rs.10.53 and the diluted earnings per share (not annualized) was Rs.10.48.

Stock trends in 2018

1. The stock was trading at about Rs.856 in the beginning of January 2018. The stock changed a lot in price, albeit gradually, over the course of the month. The final price was about Rs.778 for the month.
2. The stock continued a decline in prices in February 2018 and this decline persisted till the end of March 2018.
3. The price of the stock rose in April 2018 and again regained a price of over Rs.800. The stock steadied in price over the last few days of the month and the final price for that month was about Rs.836.
4. The share price again fell below Rs.800 in May 2018 and this decline continued through to June 2018.

1. The stock did not improve much in price over the course of August 2018. The stock rose again in price over the course of September 2018. A final 10% dividend was announced on 12 September 2018. The increase in price did not last long and the dividend preceded another decline in share prices.
2. The price of the stock did not improve by much over October 2018 but increased in the first half of November 2018. The stock fell again over the latter half of the month and declined in price over the course of December 2018. The final price for the month was about Rs.537.

Stock trends in 2017

1. The stock was trading at about Rs.299 in the beginning of January 2017. The stock rose in price over the course of the month and again over the course of February 2017. But there was a decline in prices over the latter half of February 2017. The stock rose again in price over the course of March 2017.
2. The price steadied in April 2017 and declined a little in the latter half of May 2017. The price of the stock rose again in June 2017 and this rise continued into July 2017.

1. The price of the stock steadied a bit in August 2017 and this steady pricing continued into the first three weeks of September 2017. A final 10% dividend was announced on 7 September 2017. The price of the stock rose over the course of the final days of the month with the closing price for the month being about Rs.598.
2. The price of the stock rose over the course of October, November, and December 2017 with the final price for December 2017 being about Rs.860.

Stock trends in 2016

1. The stock was trading at about Rs.521 in the beginning of the year. Then came a steep drop in the prices and the fall continued into February of the same year.
2. March 2016 saw the stock recover and the first week of April also indicated some growth. By the second week of April 2016 however, the stock had steadied in price.

1. In May 2016, there was a dip in prices with the final price for the month being about Rs.384.
2. The price of the stock fluctuated a lot in June 2016 and the final price for the month was about Rs.440.
3. The price steadied a bit in July 2016 and dropped over the course of August. The price drop continued into September 2016. A final 20% dividend was announced on 15 September 2016.
4. October and November 2016 saw heavy losses in the share price. The stock steadied a bit over the latter part of November but decreased again in December. The final price for December 2016 was about Rs.283.

Should you invest in stocks of Ramkrishna Forgings?

1. The company makes rolled, forged, and machined products all of which are in great demand across the world.
2. The company supplies parts to all the major automobile manufacturers around the world.
3. The company has five manufacturing plants that manufacture its products.
4. The company also makes open and closed die forgings which are made of carbon and alloy steel which have applications in almost every major industry in the world.
5. The company has ISO, TS, and OSHAS certifications.

1. The company has the ability to supply parts or components according to the customer requirement and accordingly, it can provide supplies either part by part or as fully assembled ones.
2. The company has also achieved an NABL Accreditation. This was done in the year 2011.

Considering all this and the profits that the company has achieved over the course of FY18 and the first half of FY19, the stocks of the company could be a good buy. Since stocks are generally unpredictable, it would be best to perform solid research before investing.

Company information

The company supplies its products across a variety of industries. The company supplies to prominent vehicle manufacturers like TATA Motors, Ashok Leyland, Daimler, and Volvo among others. The company also supplies to overseas markets.

History of the company

The company was initially founded in the year 1981 by Mr. M.P. Jalan. By the year 1985, the company had approval from Indian Railways as a supplier for items that related to the critical safety of trains. Ten years later, the company was made a limited company. During this same year, the company began supplying its products to TATA Motors. By the year 2000, the company had received an ISO certification. In 2004, the company was listed on the BSE and NSE after its IPO. The company added machining to its kitty in addition to forging by the year 2006. The years after that were marked by additions to the existing product line and additional accreditations.

Management

The company is headed by the following people:

Mr. Mahabir Prasad Jalan - Chairman

Mr. Naresh Jalan - Managing Director

The core team of the company comprises the following people:

Milesh Gandhi - Marketing and sales

P.K. Kedia - Accounts

Rajesh Mundhra - Company Affairs

Sakti Senapati - HR

B.K. Khaitan - Purchase

L.K. Khaitan - CFO

Bala Murli Krishna - Plant 1

Vijay Mishra - Plant 3

Jayadev Patasani - Plant 4

Kanchan Choudhuri - Plant 5

Rajat Dutta - IT

Rahul Bagaria - Finance

The board of directors comprises the following people including the chairman and managing director:

Mr. Pawan Kumar Kedia

Mr. Yudhisthir Lal Madan

Mr. Padam Kumar Khaitan

Mr. Amitabha Guha

Ms. Aditi Bagri

Mr. Ram Tawakya Singh

Mr. Partha Sarathi Bhattacharyya

Mr. Sandipan Chakravortty

Ramkrishna Forgings listings on NSE, BSE, and stock indices

The company is listed on the BSE and NSE under the following codes:

1. BSE: 532527
2. NSE: RKFORGEEQ
3. IND: Forgings
4. ISIN Code: INE399G01015
5. SECT: Engineering

The company is included in the following indices:

1. Nifty 500
2. Nifty MidSmallcap 400
3. Nifty Smallcap 250
4. S&P BSE AllCap

1. S&P BSE Industrials
2. S&P BSE MidSmallCap
3. S&P BSE SmallCap

Location

The registered and corporate office of the company is located at the following address:

Ramkrishna Chambers, 72, Shakespeare Sarani, Kolkata - 700 017, West Bengal, India

Telephone: +91 33 3984 0900 / 0999

Fax: +91 33 3984 0998

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The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.