Ramkrishna Forgings share price has surged over 34% in 2026 so far. 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 18% from the prevailing market price. In its initiation report, the brokerage cited the company's business diversification, expanding railway opportunities and improving capacity utilisation as key drivers of future earnings growth.
The brokerage expects the company's expansion across passenger vehicles (PVs), railways, oil and gas, exports and value-added products to support its next phase of earnings growth. It also sees improving utilisation of the company's existing manufacturing facilities and the completion of its capital expenditure cycle as key drivers of operating leverage and debt reduction.
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. It expects EBITDA margins to expand from 15.2% in FY26 to 19.5% by FY29.
The brokerage has valued the stock at 27 times its estimated September 2028 earnings per share (EPS), arriving at a target price of ₹806 per share. The valuation reflects the company's growth prospects, while factoring in its return ratios, which are still normalising relative to higher-return forging peers.
According to Monarch Networth Capital, Ramkrishna Forgings' growth drivers are increasingly extending beyond its traditional medium and heavy commercial vehicle (M&HCV) business.