Ramkrishna Forgings Ltd. (RKFL) reported net sales of INR 4615 mn in 2Q FY19 (36.4% jump over INR 3382 mn YoY) and a PAT of INR 328 mn (INR 235 mn YoY) on the back of pickup in both domestic and export volumes. Domestic/Export/Total realization for the quarter has improved by 15.3%/18.3%/15.8% while export contribution has decreased by 95 bps YoY to 21.3% (flat QoQ). EBITDAM has improved by 181 bps YoY despite lower contribution of high margin export business. RM cost as % of sales increased by 315 bps. Operating & Manufacturing Expenses as % of sales declined 274 bps YoY on the back of positive operating leverage. Results are largely in line with our estimates. We expect RKFL to register Revenue/PAT growth 19.9%/30.7% from FY18 to FY20E. At CMP of INR 558 the stock is trading at 5x FY20E EBITDA. We have reduced our FY20 EBITDA and EPS estimates by 5.6% and 6.1% respectively. We have valued RKFLs stock at 8x FY20E EBITDA and recommend BUY with a TP of INR 710 (INR 882 earlier) in 18 months....