Ramkrishna Forgings Intrinsic Value

RKFORGE • Automobiles
Current Stock Price
₹508.40
Primary Intrinsic Value
₹843.61
Market Cap
₹1830 Cr
+59.6% Upside
Median Value
₹811.56
Value Range
₹203 - ₹844
Assessment
Trading Below Calculated Value
Safety Margin
37.4%

RKFORGE Valuation Methods Summary

Method Type Intrinsic Value Range Upside/Downside Details
Book Value Method asset ₹843.61 ₹759.25 - ₹927.97 +65.9% Book Value/Share: ₹843.61, P/B: 1.0x
Revenue Multiple Method revenue ₹811.56 ₹730.40 - ₹892.72 +59.6% Revenue/Share: ₹1014.44, P/S: 0.8x
EBITDA Multiple Method earnings ₹749.03 ₹674.13 - ₹823.93 +47.3% EBITDA: ₹496.00Cr, EV/EBITDA: 6x
Simple DCF (5Y) dcf ₹203.36 ₹162.69 - ₹244.03 -60.0% CF Growth: 5.0%, Discount: 15%
Method Types: Earnings Asset DCF Growth Dividend Conservative

Want to compare with current market value? Check RKFORGE share price latest .

Valuation Comparison Chart

RKFORGE Intrinsic Value Analysis

What is the intrinsic value of RKFORGE?

Based on our comprehensive analysis using 4 different valuation methods, the estimated intrinsic value of Ramkrishna Forgings (RKFORGE) is ₹811.56 (median value). With the current market price of ₹508.40, this represents a +59.6% variance from our estimated fair value.

The valuation range spans from ₹203.36 to ₹843.61, indicating ₹203.36 - ₹843.61.

Is RKFORGE undervalued or overvalued?

Based on our multi-method analysis, Ramkrishna Forgings (RKFORGE) appears to be trading below calculated value by approximately 59.6%.

Financial Health Analysis

Financial Metric Current Value Industry Benchmark Assessment Impact on Valuation
Current Ratio 2.01 Industry Standard: 2.0+ Above 2.0 Measures short-term liquidity capacity
Debt to Equity Ratio 2.16 Industry Standard: <0.5 Above 1.0 Indicates financial leverage level
Return on Equity -1.3% Industry Standard: 15%+ Below 10% Measures shareholder return efficiency
Operating Margin 13.0% Industry Standard: 20%+ Above 10% Indicates operational efficiency level
Asset Turnover Ratio 0.56x Industry Standard: 1.0x+ Above 0.5x Measures asset utilization efficiency

Cash Flow Quality Analysis

Period Operating Cash Flow Free Cash Flow Cash Flow Quality Sustainability Score
March 2025 ₹33 Cr ₹-423 Cr Positive Operating Cash Flow 6/10
March 2024 ₹621 Cr ₹63 Cr Positive Free Cash Flow 7/10
March 2023 ₹745 Cr ₹596 Cr Positive Free Cash Flow 8/10
March 2022 ₹43 Cr ₹-134 Cr Positive Operating Cash Flow 6/10
March 2021 ₹140 Cr ₹29 Cr Positive Free Cash Flow 7/10