Ramkrishna forgives target price is half as UBS sees demand for resumes, tariff disaster slowing down

While the long-term outlook remains unharmed, Indian forging companies are expected to gain a larger share of the global market, UBS emphasizes that medium-term challenges require a more cautious attitude. Therefore, the brokerage has reduced its revenue estimates for fiscal year 2026 and 2027 by 17% and 23%, respectively, citing volume visibility and softer demand than expected.

The recent one-off stock inconsistency of Rs 1.5 crore has also been flagged as concern. Although it is attributable to the lapse of the internal verification process, UBS warns that the impact on investor sentiment and multiples of valuation may be significant. The brokerage also points out that management who cannot clarify the issue in a timely manner could exacerbate market concerns.

According to UBS, further gains remain limited in the near future after the share price from Ramkrishna Forgings peak exceeds 40% and above 40%. Due to weak demand trends, limited visibility and operational setbacks, securities companies advocate a “waiting” approach until a more favorable operating environment appears.