- 25 Jul 2024
- ICICI Securities
RAMKRISHNA FORGINGS REPORTS STEADY PERFORMANCE IN Q1FY25
RKFORGE - 959 Change: -25.35 (-2.57 %)News: On Consolidated basis, sales for Q1FY25 stood at ₹1,005 crores (up 13% YoY, down 2% QoQ). Adjusted EBITDA for the quarter came in at ₹225 crores with margins at 22.4% up 110 bps QoQ. Consequently, PAT stood at ₹81 crores, up 3%YoY. Sales volume for the quarter came in at 38.5k tonne (flat YoY) with corresponding Adjusted EBITDA/tonne at ~₹58k/t beating our FY25E estimates. The company also made a small acquisition in Mexico at the behest of a North American customer for ~₹ 4 crore.
Views: Company has been winning healthy orders on the export front and is already executing growth capex on this front. It is guiding for ~15-20% volume growth in base business for FY25E, while coupled with contribution from new acquisitions should result in healthy 20%+ growth in FY25E and FY26E. Company’s stock price however has had a recent run-up over the past one year and now trades a tad expensive at ~27x PE on FY26E with return ratios pegged at ~16-18%.
Impact: Neutral