Shares of Bharat Forge, Ramkrishna Forgings and GNA Axles surged 3-9 percent on October 6 as preliminary data suggests Class 8 truck orders in North America were at a record high in the month of September.
According to ACT Research, preliminary Class 8 net orders were 53,700 units, while NA Classes 5-7 net orders were 26,600 units. Class 5 and classes 6-7 are trucks, buses, recreational vehicles, and step van configurations, while Class 8 is trucks and tractors.
At 12 pm, Bharat Forge was quoting at Rs 768 on the National Stock Exchange, surging 8.8 percent. GNA Axles was 3 percent higher at Rs 667 and RK Forgings was trading at Rs 211, up 3.5 percent.
Follow our live blog for all the market action
According to Eric Crawford, ACT Vice President and Senior Analyst, “The strength in orders reflects OEMs having fully opened their order books for 2023 a bit earlier than normal, as the seasonally weak period for truck orders typically runs from May-September.”
For Bharat Forge, North America and Europe account for almost 40 percent of the total revenue. Meanwhile, North America makes up 45 percent of GNA Axles’ export revenue and 60 percent of RK Forgings’.
“September Class 8 orders were sensational no matter how you slice the data. Over the past 12 months, 249,800 Class 8 orders have been booked,” added Crawford.
Domestic brokerage firm Geojit Financial Services has an ‘Accumulate’ rating on the stock of Bharat Forge with a target price of Rs 815. “The demand for the automobile segment remains robust in both domestic and export markets. We expect the order inflow to continue,” the firm said. Meanwhile, Sharekhan by BNP Paribas has a Buy rating on RK Forgings with a target price of Rs 238.
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.