We upgrade to BUY with a TP of Rs 742, based on 8x Jun-19E EV/EBIDTAon the back of its strong earnings growth, improved cash flows, and improving return ratios. Ramkrishna Forgings (RMKF) 1QFY18 results came in ahead of estimates, owing to higher volumes and realisations, and better operational performance. 1QFY18 continued RMKFs trend of improving exports as in 4QFY17. In a weak domestic MHCV market, RMKF has shown good growth led by market share gains and had BS-4 components approved by the OEMs unlike its peers. RMKF is at an inflection point as it successfully scales up its heavy press forgings capacity (utilization currently at 50%) and adds new OEMs and products. This, we believe, will lend heft to its medium- to long-term growth trajectory.