UBS initiates coverage on Ramkrishna Forgings with 'Buy' rating, sees 46% upside
UBS has initiated coverage on Ramkrishna Forgings with a 'Buy' rating and a target price of Rs 1,500, indicating an upside potential of 46% from the previous closing price of Rs 1,030 per share.
UBS pointed out visible earnings drivers that suggest the potential for future upgrades. Despite Ramkrishna Forgings holding a global market share in the low single digits, this indicates substantial growth potential.
Additionally, UBS believes that the company's previous growth drivers remain relevant. Ramkrishna Forgings has successfully transitioned from being a pure forging company to a comprehensive assembly solution provider. This shift has enabled the firm to expand its product portfolio through diversification, allowing it to move higher up the value chain.
Looking ahead, the company’s upcoming capacity expansions, the addition of new clients, key order wins, and recent acquisitions are all expected to provide strong earnings visibility. Moreover, UBS has noted that market consensus may not fully capture Ramkrishna Forgings' capabilities or the full extent of its potential growth drivers.
In Monday's trading, RK Forgings' stock rose 3% to Rs 1,030. The stock has increased by 49% in the past six months and has risen 360% over the past two years.
Stock Trading
Derivative Analytics Made Easy
By — Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets
Stock Trading
A2Z of Stock Trading — Online Stock Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Macroeconomics Made Easy: Online
