Motilal Oswal has given Buy recommendation for Bharat Forge recommended buy rating on the stock with a target price of Rs 860 in its research with a target price of Rs. 860 in its research report issued on Mar 11, 2022

Motilal Oswal’s research report on Bharat Forge

Cyclical recoveries across key businesses and contributions from the new businesses are expected to propel a sharp recovery for Bharat Forge (BHFC) over the next 2–3 years. This along with a ramp-up in the overseas aluminum forging business is likely to result in a consolidated EPS CAGR of 24% over FY22-25E. We see upside to our estimates from a) the US aluminum capacity, b) the recent acquisitions in the industrial business and c) foray into the e-mobility business. The stock trades at 25.4x/19.6x FY23E/FY24E consolidated EPS, respectively.

Outlook

We maintain our BUY rating with a TP of INR860 (based on 26x Mar’24E EPS), implying 33% potential upside. BHFC is our top pick in the auto component industry.

More Info

At 14:34 hrs Bharat Forge was quoting at Rs 648.90, up Rs 0.15, or 0.02 percent.

It has touched an intraday high of Rs 668.55 and an intraday low of Rs 645.90.

It was trading with volumes of 67,223 shares, compared to its thirty day average of 76,644 shares, a decrease of -12.29 percent.

In the previous trading session, the share closed up 2.61 percent or Rs 16.50 at Rs 648.75.

The share touched its 52-week high Rs 848.00 and 52-week low Rs 555.60 on 10 November, 2021 and 19 April, 2021, respectively.

Currently, it is trading 23.48 percent below its 52-week high and 16.79 percent above its 52-week low.

Market capitalisation stands at Rs 30,212.05 crore.

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