Motilal Oswal has given Buy recommendation for Bharat Forge recommended buy rating on the stock with a target price of Rs 850 in its researc with a target price of Rs. 850 in its research report issued on Jun 05, 2021

Motilal Oswal’s research report on Bharat Forge

Strong performance by BHFC in 4QFY21 was driven by a strong recovery in the Auto export business and resultant benefits of operating leverage. While all core businesses are expected to witness a sharp cyclical recovery, BHFC’s huge plans in Defense and e-Mobility is starting to fructify with the setting up of a greenfield plant focusing on these areas.

Outlook

We raise our consolidated EPS by 17%/18% for FY22E/FY23E, driven by revenue upgrades due to a strong cyclical recovery. We maintain our Buy rating with a TP of INR850/share (28x Mar’23E EPS).