Bharat Forge stock slumps 3.5% amid weak Class-8 truck orders in North America

Bharat Forge shares are down over 12 percent this year.

Shares of Bharat Forge slumped 3.5 percent in early trade on August 5 after Class-8 truck orders in North America dropped to a 15-month low in the month of July.

Class 8 truck orders in North America declined 5 percent on month in July, coming at 12,400 units. This also marks an 8 percent fall when compared to the same period last year.

It is also the second instance in 2024 when Class 8 truck orders in North America have declined on year and the fifth consecutive month that orders have stayed below 20,000 units.

Since defence-to-auto component supplier Bharat Forge has a strong presence in the Class 8 trucks market in North America, weak sales from the segment weighed heavily on the stock.

At 09.57 am, shares of Bharat Forge were trading at Rs 111.30 on the NSE.

Follow our live blog for all market updates

"OEMs (Original Equipment Manufacturers) experienced a somewhat mixed market this month with vocational markets mildly underperforming conventional ones, but the overall picture was steady. Despite stagnant freight markets, fleets continue to invest in new equipment, albeit at a slowing pace," FTR Transport Intelligence stated.

"We expect to see further reductions in backlogs once the final Class 8 market indicators are released later this month, as well as continued growth in an already-record level of inventory. The pressure on OEMs to reduce build rates continues to grow," FTR Transport further added.

Back in June, Bharat Forge announced an additional $40 million investment towards Bharat Forge America.

The funds are earmarked for further investment by Bharat Forge America into its wholly-owned subsidiary, Bharat Forge Aluminum USA Inc. (BFAL), to support its capital expenditure for the aluminum forging facility.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.