RK Forgings, HCC Stocks Top Picks For 2023 Amid Emerging Opportunities, Says U.R. Bhat Of Alphaniti Fintech

Company Name: RK Forgings CMP: Rs 234 Market cap: Rs 2,534 crore Ramkrishna Forgings is a three-decade-old company that has achieved commendable progress over the years and has now become one of the major players in the fragmented forgings industry. The company gave the best-in-class performance over the last decade with a compounded annual growth rate (CAGR) of around 16 per cent in revenue and 24 per cent in profit, with a solid 20 per cent-plus return on equity (ROE) currently. Industry Dynamics While the robust growth achieved hitherto was by largely servicing the automobile industry, a structural change in the sector with the gradual shift towards electric vehicles (EVs) is a potential challenge as the need for forged components would greatly reduce. The number of moving parts in EVs is minimal as  compared to conventional vehicles. The thrust towards infrastructure...