RKFORGE - Swing Trade Analysis with AI Signals

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

Swing Trade Rating: 3.4

📈 Positive

• 📘 EPS of ₹23.6 and P/E of 28.0 vs industry P/E of 32.8 suggest fair valuation.
• 📈 ROE of 10.9% indicates moderate shareholder return.
• 📉 Debt-to-equity ratio of 0.55 is manageable for a capital-intensive sector.
• 📉 Price is near recent support (₹513), offering a potential low-risk entry zone.

⚠️ Limitation

• 📉 RSI at 41.4 and MACD at -4.97 indicate weak momentum and bearish sentiment.
• 📉 Price is below both DMA 50 (₹559) and DMA 200 (₹645), confirming a downtrend.
• 📉 Volume (2.31 lakh) is significantly below 1-week average (4.83 lakh), showing low participation.
• 📉 PAT dropped sharply from ₹208 Cr. to ₹21.5 Cr., a 49.4% decline QoQ.
• 📉 FII and DII holdings declined, reflecting reduced institutional confidence.
• 📉 PEG ratio of 2.00 suggests overvaluation relative to growth potential.
• 📉 ROCE of 6.52% indicates weak capital efficiency.

🚫 Company Negative News

• 📉 Analysts have flagged concerns over declining export orders and margin compression due to raw material costs.

✅ Company Positive News

• 🔧 RKFORGE remains a key supplier in the auto and industrial forging space with a diversified client base.
• 📈 Long-term demand from infrastructure and commercial vehicle segments may support recovery.

🏦 Industry

• 🏭 Operates in the auto components and forging sector, which is cyclical and sensitive to global demand and commodity prices.
• 📊 Industry P/E of 32.8 reflects moderate optimism and growth expectations.

🧾 Conclusion

• 📉 RKFORGE is fundamentally stable but currently under technical pressure and facing earnings volatility, making it a cautious swing trade candidate.
• 📍 Optimal entry: ₹520–₹530 (near support and oversold zone).
• 🚪 Exit if held: ₹560–₹570 (near DMA 50) unless momentum improves.
• ⚠️ Suitable for swing trading with tight stop-loss and close monitoring of volume and earnings trend reversal.

I can also help compare RKFORGE’s setup with Bharat Forge or Ramkrishna Forgings to identify stronger technical setups.