Ramkrishna Forgings India

Ramkrishna Forgings India- 3QFY23 Result Ramkrishna Forgings continued to post steady performance - RKFORG’s reported a topline growth of 29.3% YoY, though it dropped 5.7% QoQ to Rs7775mn in 3QFY23, compared to our estimate of Rs7466mn. EBITDA margin stood exactly in-line with our estimate of 22.2%. EBITDA during the quarter grew 22.5% YoY, though declined sequentially by 1.4% QoQ to Rs1730mn (MNCL Estimate: Rs1657mn). Higher than expected interest expenses and tax provision resulted in lower than estimated PAT. PAT stood at Rs610mn (up 34.4% YoY, though lower by 9.4% QoQ), lower than our estimate of Rs712mn. RKFORG has almost reached our previous target price of Rs286, giving ~61% return since our Initiating Coverage Report on July 22, 2022. We will share our detailed view, revised rating and target price after the concall with the management, scheduled today.