Moneycontrol Bureau
Shares of Bharat Forge fell nearly 3 percent intraday on Friday after brokerage Bank of America Merrill Lynch (BoAML) downgraded the stock to underperform from buy.
The brokerage also cut its target price by 10 percent to Rs 1,130 (14 percent potential downside), led by a 11 percent cut to FY17E earnings per share (7 percent below consensus).
"We are negatively surprised by recent reports of a decline in heavy truck orders in North America. This will lead to slower exports of steel forgings by Bharat Forge to the US truck and machinery sector," BoAML reasoned.
Bharat Forge is India's largest manufacturer and exporter of automotive components and leading chassis component manufacturer in the world.
At 09:52 hours IST, the scrip of Bharat Forge was quoting at Rs 1,268.15, down Rs 31.65, or 2.43 percent on the BSE.
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