Stock To Buy: Small Cap Stock Rallied 75% In 1-Yr, ICICI Direct Sees More Upside

ICICI Direct has recommended investors to buy auto ancillaries sector stock Ramkrishna Forgings Ltd with target price of Rs 400 per share. The stock traded its new 52-week high price in trade today. If you buy Ramkrishna Forgings Ltd share now at current market price of Rs 331.00 per share, you can get potential return of 21%. Check details below:

Ramkrishna Forgings Declared Dividend: The Board of Directors on April 28, 2023 declared 4+ Interim Dividend of Re. 0.50/- per Equity Share of Rs. 2/- each for the Financial Year 2022-23. The said dividend will be paid within 30 days from the date of declaration.

Ramkrishna Forgings Stock Performance: The last trading price of Ramkrishna Forgings is Rs 331.00 per share with intraday gain of 0.44% on BSE. The stock of Ramkrishna Forgings traded its new 52-week high on Wednesday when the price soared to 339.00 apiece. The stock's 52-week low price is Rs 145.50 per share. Its market capitalisation is Rs 5,292.34 crore.

Ramkrishna Forgings Return: The stock gave 45% return in last 6-months, 75% return in last 1-year, 185% return in last 2-years, and 789% return in last 3-years.

Valuation: According to ICICI Direct, "RKF's stock price has grown at ~16% CAGR in the past five years from Rs 160 in April 2018, vastly outperforming the Nifty Auto Index. We retain BUY rating amid strong new order wins, unchanged vision to grow in high double digit in coming years, sustainable margin profile of ~20%+ and RoCE accretive organic as well as inorganic expansion plans. Upgrading our estimates, we now value RKF at Rs 400 i.e. 15x P/E on FY25E EPS of Rs 26.6 (earlier target price of Rs 335 per share).

About Ramkrishna Forgings Ltd: Ramkrishna Forgings (RKF) is a Kolkata based forging company, incorporated in 1981. It has six manufacturing plants in India concentrated around Jamshedpur and Kolkata with installed capacity of 1,87,100 tonnes as on date.

Disclaimer:The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.