Ramkrishna ForgingsNSE:RKFORGE +0.82%87 Return-on-Tangible-Equity is 7.06% as of Mar. 2026, which is 53% below its 10-year median of 15.05. GuruFocus rates NSE:RKFORGE with a GF Score™ of 87/100 and a GF Value™ of ₹787.55 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,972 Industrial Products companies, Ramkrishna Forgings ranks worse than 67.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ramkrishna Forgings's annualized net income for the quarter that ended in Mar. 2026 was ₹2,238 Mil. Ramkrishna Forgings's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₹31,711 Mil. Therefore, Ramkrishna Forgings's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.06%.
The historical rank and industry rank for Ramkrishna Forgings's Return-on-Tangible-Equity or its related term are showing as below:
NSE:RKFORGE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 1.12 Med: 15.05 Max: 20.78
Current: 2.38
During the past 13 years, Ramkrishna Forgings's highest Return-on-Tangible-Equity was 20.78%. The lowest was 1.12%. And the median was 15.05%.
NSE:RKFORGE's Return-on-Tangible-Equity is ranked worse than 67.9% of 2972
companies
in the Industrial Products industry
Industry Median: 6.72
vs NSE:RKFORGE: 2.38
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ramkrishna Forgings Return-on-Tangible-Equity Related Terms
Ramkrishna Forgings Return-on-Tangible-Equity Historical Data
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The historical data trend for Ramkrishna Forgings's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:RKFORGE vs CRS, ATI, MLI: Return-on-Tangible-Equity Comparison
For the Metal Fabrication subindustry, Ramkrishna Forgings's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ramkrishna Forgings Return-on-Tangible-Equity vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ramkrishna Forgings's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ramkrishna Forgings's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.06% mean?
Ramkrishna Forgings (NSE:RKFORGE) has a Return-on-Tangible-Equity of 7.06% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ramkrishna Forgings and its competitors. This is 53% below median its historical median of 15.05. Over the past decade, Ramkrishna Forgings' Return-on-Tangible-Equity has ranged from 1.12 to 20.78. According to the industry distribution chart, Ramkrishna Forgings ranks #2018 out of 2972 companies in the Industrial Products industry, placing it in the top 67.9%.
Is Ramkrishna Forgings' Return-on-Tangible-Equity too high?
Ramkrishna Forgings' current Return-on-Tangible-Equity of 7.06% is 53% below median its 10-year median of 15.05. Over the past 10 years, this metric has ranged from a low of 1.12 to a high of 20.78. The Industrial Products industry median Return-on-Tangible-Equity is 6.72. Ramkrishna Forgings' value of 7.06% is 5.1% above this industry median. Based on the distribution chart, Ramkrishna Forgings ranks #2018 out of 2972 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Ramkrishna Forgings has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ramkrishna Forgings' Return-on-Tangible-Equity compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Ramkrishna Forgings ranks #2018 out of 2972 companies for Return-on-Tangible-Equity. This places Ramkrishna Forgings in the lower half of its industry. The industry median Return-on-Tangible-Equity is 6.72. Ramkrishna Forgings' value of 7.06% is 5.1% above this benchmark. Historically, Ramkrishna Forgings' own Return-on-Tangible-Equity has ranged from 1.12 to 20.78 over the past decade. While the company's 10-year median is 15.05 vs. the industry median of 6.72, Ramkrishna Forgings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Industrial Products company?
The median Return-on-Tangible-Equity among Industrial Products companies is 6.72, based on 2,972 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ramkrishna Forgings's current Return-on-Tangible-Equity of 7.06% is 5.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ramkrishna Forgings and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Equity is 6.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ramkrishna Forgings's current Return-on-Tangible-Equity is 7.06%, which is 53% below median its own 10-year median of 15.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ramkrishna Forgings stock overvalued right now?
Based on GuruFocus' analysis, Ramkrishna Forgings (NSE:RKFORGE) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹787.55, compared to a current price of ₹565.30 — trading 28.2% below its estimated fair value. The current Return-on-Tangible-Equity is 7.06%, which is 53% below median its 10-year median of 15.05 and 5.1% above the Industrial Products industry median of 6.72. Ramkrishna Forgings' overall GF Score™ is 87/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ramkrishna Forgings (NSE:RKFORGE), the current Return-on-Tangible-Equity is 7.06% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ramkrishna Forgings (NSE:RKFORGE) Overvalued in 2026?
Based on GuruFocus' analysis, Ramkrishna Forgings stock appears to be undervalued.
The current stock price of ₹565.30 is trading 28.2% below its estimated GF Value™ of ₹787.55.
GuruFocus considers Ramkrishna Forgings to be Modestly Undervalued.
Key valuation signals for NSE:RKFORGE:
Return-on-Tangible-Equity: 7.06% (53% below median its 10-year median of 15.05)
GF Value™: ₹787.55 vs. price of ₹565.30 (28.2% below fair value)
Industry Position: 5.1% above the Industrial Products median (#2018 of 2972)
No single metric tells the full story. See the NSE:RKFORGE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ramkrishna Forgings Ltd is an Indian-based company, that engages in the manufacture of forgings and production of metal products. Its product portfolio includes engine components, front and rear axle components, transmission components, crown wheels and bellcrank assemblies, and others. The company's forgings are used in various industries and sectors, including automotive, earth moving and mining, farm equipment, general engineering, railways, steel plants, and others. Geographically the company caters its services to both domestic and overseas markets.
87GF Score
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