Is Ramkrishna Forg. overvalued or undervalued?

Jun 26 2025 08:01 AM IST
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As of June 25, 2025, Ramkrishna Forg. is considered overvalued with a PE ratio of 29.01 and an EV to EBITDA of 21.81, despite a PEG ratio of 0.78 indicating growth potential, as it has underperformed year-to-date and over the past year compared to its peers.
As of 25 June 2025, the valuation grade for Ramkrishna Forg. has moved from fair to expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 29.01, an EV to EBITDA of 21.81, and a ROE of 14.00%.

In comparison to its peers, Ramkrishna Forg. has a significantly higher PE ratio than Bharat Forge, which stands at 59.01, and a lower EV to EBITDA compared to CIE Automotive at 12.32. While the company's PEG ratio of 0.78 suggests some growth potential, the overall valuation indicates that it is not justified given the current market conditions. Additionally, despite recent strong returns compared to the Sensex over the past week and month, the year-to-date and one-year returns show a decline, further reinforcing the notion that the stock may be overvalued.
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