Bharat Forge stock rises 3% after Deutsche Bank sees 31% upside

Bharat Forge share price rallied 3 percent intraday on Monday after global brokerage firm Deutsche Bank maintained its Buy call on the stock with a target price at Rs 830, implying 31 percent potential upside.

Company's recent price action is likely driven by worries about peak truck cycle and potential tariff actions, and is ignoring underlying growth drivers, the research house said, adding revenue growth momentum continued.

It said the threat of tariffs is an overhang but not material. "Business model strengthened during the past few cycles."

The stock price has fallen 13 percent in past three months.

Deutsche Bank said its positive thesis on stock is premised on strong data points from company's end markets and expects revenue/EPS CAGR of 9 / 18 percent over FY18-21.

Bharat Forge manufactures an extensive array of critical and safety components for several sectors including automobiles (across commercial & passenger vehicle), oil & gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.

At 13:39 hours IST, the stock price was quoting at Rs 651.20, up Rs 17.90, or 2.83 percent on the BSE.