Ramkrishna Forgings Ltd. (RKFL) reported net sales of INR 3333 mn in 2Q FY18 (114.1% jump over INR 1557 mn YoY) and a PAT of INR 235 mn (loss of INR 50 mn YoY) on the back of pickup in both domestic export volume and improved realizations. EBITDAM has improved by 164.5 bps YoY despite delay in passing of increased RM cost to the clients. RM cost as % of sales increased by 1618 bps. Employee expenses as % of sales declined 564 bps YoY on the back of positive operating leverage. Results are largely in line with our estimates. At CMP of INR 748 the stock is trading at 8.4x its FY19E EBITDA. We recommend...