RKFORGE - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.7

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📊 Fundamental Analysis Report

• Stock Code: RKFORGE
• Market Cap: ₹9,818 Cr
• Current Price: ₹542
• 52W High/Low: ₹1,020 / ₹513
• EPS: ₹23.6
• Stock P/E: 28.4 vs Industry P/E: 32.6 ✅
• PEG Ratio: 2.02 ❗ (Overvalued vs Growth)
• Book Value: ₹166 | P/B Ratio: ~3.26 ✅
• ROE: 10.9% | ROCE: 6.52% 🔻
• Debt to Equity: 0.55 🟡 (Moderate Leverage)
• Dividend Yield: 0.37% 🚫
• Quarterly PAT: ₹21.5 Cr (↓89.7%)
• RSI: 46.0 | MACD: -4.68 📉

✅ Positive

• Reasonable P/E and P/B ratios suggest fair valuation compared to industry peers.
• Moderate debt-to-equity ratio supports financial flexibility.
• Price near 52-week low and below DMA 50/200 may offer value entry point.

⚠️ Limitation

• ROCE below 10% indicates weak capital efficiency.
• PEG ratio above 2 suggests valuation is stretched relative to growth.
• Dividend yield is low, offering limited passive income.
• Technical indicators (MACD, RSI) show weak momentum.

📉 Company Negative News

• Quarterly PAT dropped sharply from ₹208 Cr to ₹21.5 Cr, signaling earnings volatility.
• FII and DII holdings declined, indicating reduced institutional confidence.

📈 Company Positive News

• Stock trading near support zone may attract value investors.
• Stable EPS and reasonable valuation metrics support long-term potential.

🏦 Industry

• RKFORGE operates in the auto components and forging sector.
• Industry P/E of 32.6 is slightly higher, suggesting RKFORGE trades at a modest discount.
• Sector benefits from automotive demand recovery and export opportunities.

🧭 Conclusion

• Entry Zone: ₹520–₹540 (near support and RSI neutral)
• Long-Term View: Fair valuation and sector positioning support long-term holding. Accumulate cautiously while monitoring earnings recovery and technical indicators.