1 RKFORGE share price target reports by brokerages below. See what is analyst's view on RKFORGE share price forecast, rating, estimates, valuation and prediction behind the target. You may use these research report forecasts for long-term to medium term for your investment or trades in 2020.
Lowering our volume estimates, we expect RFL’s volume to clock just 1% CAGR over FY19-FY21E. We decrease our revenue and EBIDTA estimates by 17%/11% and 17%/10% for FY20E/FY21E and reduce our EPS estimate by 28%/8% for FY20E/FY21E. The Management has indicated lower capex for FY20E, assuming lower demand, which signifies concern for the domestic M&HCV industry’s growth in the coming years. Further, heavy truck orders are slowing down in North America indicating lower production in future. Considering volume decline during down-cycle for M&HCV, likely slowdown in export market, margin pressure and reducing return ratios we lower our P/E valuation multiple to 12x (from 13x earlier) and maintain our REDUCE recommendation on the stock with a revised Target Price of Rs395 (from Rs465 earlier), valuing it at 12xFY21 EPS.
The Management has indicated lower capex plan for FY20E, assuming lower demand, which signifies imminent growth concern for the domestic M&HCV industry in the coming years. Further, heavy truck orders are slowing down in North America, which suggests lower production in future. Considering likely fall in volume during down-cycle for M&HCVs, slowdown in exports market and margin pressure, we maintain our REDUCE recommendation on the stock with a revised Price Target of Rs465 (from Rs455 earlier), valuing it at 13xFY21E EPS.
SOURCE: Data from D'Market via Quandl. Intraday data delayed 15 minutes.
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