Bharat Forge
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Bharat Forge's management has expressed a strong outlook, emphasizing robust demand across domestic and international markets, particularly in high-growth sectors like defense and aerospace. This strategic pivot aims to diversify revenue streams and enhance capital efficiency, which is crucial given the current margin pressures stemming from operational challenges and rising energy costs. Vista's financial outlook reflects stable revenue growth consistent with historical performance, although margins are expected to remain under pressure in the near term. The company's ambitious INR 2,500 crore fundraising initiative for growth capex and potential M&A underscores its commitment to capturing long-term structural growth opportunities. While the industry is experiencing a favorable growth trajectory, with a forecast CAGR of 6.84%, Bharat Forge must navigate execution risks and geopolitical uncertainties that could impact its performance. Over the next 12-24 months, key opportunities lie in scaling its defense and aerospace verticals, while watchpoints include the successful execution of its restructuring efforts and the management of inflationary pressures on margins
Why We Like This Stock
- Strong demand in defense and aerospace sectors is expected to drive revenue growth
- The company's strategic pivot towards high-value non-auto sectors enhances long-term growth potential
- A robust order book and planned capacity expansions position Bharat Forge to capitalize on structural industry tailwinds
Things To Watch Out For
- Margin pressures from rising energy costs and operational inefficiencies may impact short-term profitability
- Execution risks related to defense order timelines and restructuring of international operations could hinder growth
- Geopolitical uncertainties and inflationary pressures present ongoing challenges to demand and operational stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 15,682 | 15,123 | 16,812 | 17,853 | 20,523 |
| Profit Before Tax (Cr.) | 1,390 | 1,473 | 1,821 | 1,823 | 2,333 |
| PBT Margin | 8.9% | 9.7% | 10.8% | 10.2% | 11.4% |
| Net Profit (Cr.) | 841 | 881 | 1,170 | 1,367 | 1,735 |
| Earnings Per Share | 18.4 | 19.0 | 24.3 | 28.3 | 36.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Emkay Global | ▲ Buy | 2,400 | 23-Aug-2026 |
| Axis Securities | ▼ Sell | 1,900 | 11-Aug-2026 |
| CLSA | ► Hold | 2,106 | 11-Aug-2026 |
| Citigroup | ▼ Sell | 1,210 | 11-Aug-2026 |
| Goldman Sachs | ► Neutral | 2,120 | 11-Aug-2026 |
| ICICI Securities | ▲ Buy | 2,400 | 11-Aug-2026 |
| JPMorgan | ► Hold | 1,870 | 11-Aug-2026 |
| Jeffries | ▲ Buy | 2,500 | 11-Aug-2026 |
| Kotak Securities | ▼ Sell | 1,500 | 11-Aug-2026 |
| Moneycontrol | ► Equalweight | nan | 11-Aug-2026 |
| Morgan Stanley | ▲ Overweight | 2,469 | 11-Aug-2026 |
| Motilal Oswal | ► Neutral | 1,931 | 11-Aug-2026 |
| Nomura | ► Neutral | 2,260 | 11-Aug-2026 |
| Geojit Financials | ▼ Sell | 1,732 | 12-May-2026 |
| HDFC Securities | ▲ Buy | 2,281 | 08-May-2026 |
Company Overview
Show Company Profile
Bharat Forge Limited engages in the manufacture and sale of forged and machined components in India and internationally. It operates through three segments: Forgings, Defence, and Others. The company offers automotive components comprising crankshafts, connecting rods, emission/after treatment, and fuel injection systems; chassis, such as front axle beams, steering knuckles, control arms, knuckle, forks, and reinforcement brackets; transmission and driveline components; and power generation components for thermal, hydro, and wind energy. It provides oil and gas forging products, such as subsea, surface, and drilling components; rail products, including engine and bogie components, turbochargers, and power electronics; and marine products that include propellers, marine motor, stern tube, crankshaft, conrod, piston rod, stock, trunk, and pintle. In addition, the company offers various components, such as turbochargers and superchargers, rotor assembly, and air cycle machine for land, marine, and aviation application; construction and mining products, including machined crankshafts, injector bodies, front spindles, and track links; and e-mobility, castings, and defense products. Further, it provides aerostructures, landing gear, and critical engine components. The company was incorporated in 1961 and is headquartered in Pune, India.