Ramkrishna Forgings share price has surged over 34% in 2026 so far, demonstrating strong investor confidence in the company's diversification strategy. According to reports from LiveMint, Monarch Networth Capital has initiated coverage on the stock with a 'Buy' rating and a target price of ₹806 per share, implying an upside potential of around 16% from the closing market price of ₹694.20. The brokerage cited the company's business diversification, expanding railway opportunities and improving capacity utilisation as key drivers of future earnings growth.
As reported by LiveMint, Monarch Networth Capital projects Ramkrishna Forgings to report a 20% revenue CAGR, 30% EBITDA CAGR and 102% adjusted profit after tax (PAT) CAGR between FY26 and FY29. The brokerage expects EBITDA margins to expand from 15.2% in FY26 to 19.5% by FY29. The valuation reflects the company's growth prospects, while factoring in its return ratios, which are still normalising relative to higher-return forging peers. The stock is valued at 27 times its estimated September 2028 earnings per share (EPS), arriving at the target price of ₹806 per share.
According to Monarch Networth Capital, Ramkrishna Forgings' growth drivers are increasingly extending beyond its traditional medium and heavy commercial vehicle (M&HCV) business. The company has a forging capacity of 333,400 metric tonnes (MT) and casting capacity of 78,600 MT. The brokerage highlighted new passenger vehicle and metro railway orders secured in Q1FY27, alongside rising exposure to aluminium forgings, oil and gas applications, stainless steel and high-strength alloys. Geographical diversification is another important growth lever, with Europe currently accounting for more than 40% of the company's exports, a share expected to normalise to around 30–40% as exports to the US recover.
As reported by LiveMint, railways contributed 7.5% of the company's standalone revenue in FY26, up from 4.6% in FY25. The existing railway components business benefits from sustained rolling-stock production by Indian Railways, while the commencement of bulk bogie-assembly supplies opens up an annual addressable market of more than ₹2,000 crore. The company has begun supplying bogies for the Vande Bharat Sleeper train and fulfilling Indian Railways development orders. The RTWL joint venture provides an additional opportunity through domestic wheel manufacturing and import substitution, with an annual Indian Railways offtake commitment of 80,000 wheels. Monarch Networth Capital expects railway revenue to grow at a compound annual growth rate (CAGR) of 27% over FY26–FY29E.
According to Monarch Networth Capital, the next phase of expansion will depend less on adding fresh capacity and more on improving utilisation of the company's existing manufacturing base. The brokerage expects forging capacity utilisation to increase from 58% in FY26 to 88% by FY29, while casting utilisation is projected to rise from 42% to 90%. This is expected to support sales volume growth of around 18% annually over FY26–FY29. The completion of the major capital expenditure cycle is also expected to help Ramkrishna Forgings reduce debt and interest costs, thereby supporting an improvement in return ratios. The projections depend on execution, demand recovery and the anticipated improvement in capacity utilisation.
