Ramkrishna Forgings Reports Flat Q4 Performance Amid Strong Operating Profit Growth

Feb 06 2025 06:35 PM IST
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Ramkrishna Forgings, a midcap in the castings and forgings sector, has recently experienced an evaluation adjustment amid stable financial performance for the quarter ending December 2024. The company reported a significant annual growth in operating profit, while maintaining a strong institutional holding, despite a lower return on capital employed.
Ramkrishna Forgings, a midcap player in the castings and forgings industry, has recently undergone an evaluation adjustment reflecting its current market dynamics. The company reported flat financial performance for the quarter ending December 2024, with key metrics indicating a stable operating environment. Notably, the operating profit has demonstrated a robust annual growth rate of 35.39%, suggesting a solid foundation for long-term growth.

Despite the flat results, the company maintains a high institutional holding at 29.45%, which often indicates a level of confidence from investors with substantial resources to analyze the company's fundamentals. However, the return on capital employed (ROCE) has been noted at 12.58%, marking a lower point for the company, while the operating profit to interest ratio stands at 5.49 times.

The technical trend for Ramkrishna Forgings has been characterized as sideways, indicating a lack of clear price momentum. The stock is currently trading at a discount compared to its historical valuations, with a PEG ratio of 1.3, while it has generated a return of 2.19% over the past year alongside a profit increase of 27.5%.

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