Buy Bharat Forge; target of Rs 1000: ICICI Direct

ICICI Direct's research report on Bharat Forge

Bharat Forge (BFL) is India’s leading auto component exporter with strong engineering, technological competencies in forging and metallurgy. With total capacity of 6.83 lakh MT per annum, its products find application in domestic, exports markets across PV, CV, oil & gas, construction & mining, power, defence, etc. FY22 standalone segment mix – ~30% CV, ~47% Industrial, ~12% PV • FY22 standalone export mix - ~68% America, ~29% Europe, ~3% other.

Outlook

We retain BUY amid robust order wins in the domestic business, increasing traction being witnessed in the defence space and margin expansion on anvil amid decline in RM prices as well as operating leverage gains. Revising our estimates, we now value BFL at a revised target price of Rs 1,000 i.e. 35x P/E on FY24E EPS (earlier target price Rs 900).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Bharat Forge - 15 -11-2022 - icici