Shares of Ramkrishna Forgings are among the multibagger stocks of this year that have given around 151 per cent return in year-to-date (YTD) terms. Ramkrishna Forgings is among India’s largest manufacturers and exporters of CV forgings. Brokerage firm Emkay believes that the company is a play on CV upcycle in domestic and overseas markets.

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The brokerage sees further potential upside on Ramkrishna Forgings share price of over 28% from current levels. It believes that improving macros, pick-up in infra-spending, and the recovery in replacement demand should drive a 30 per cent volume CAGR in the underlying India MHCV industry in FY21-24E.

Emkay has initiated coverage on the multibagger stock with a Buy rating and a target price of Rs 1,530 per share, and as per the brokerage, the stock’s further upsides to its target price may come from continued order wins and acquisition of ACIL which may add to the fair value. However, it said that key downside risks are delay in auto sector/macro recovery, client concentration risk and adverse currency.