Webinar :Register now for Commodity Ki Paathshala webinar on ‘FPOs & Agriculture Marketing-The Beginning of a New Era’ on January 22, 4pm

Buy Bharat Forge; target of Rs 601: Emkay Global Financial

Emkay Global Financial is bullish on Bharat Forge has recommended buy rating on the stock with a target price of Rs 601 in its research report dated November 11, 2020.

November 13, 2020 / 12:30 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Emkay Global Financial's report on Bharat Forge


Q2FY21 results were subdued due to weakness in CV and Industrial segments, especially in overseas markets. Revenues at Rs8.8bn missed estimates (Rs10.6bn), owing to lower-thanexpected overseas Auto revenues. EBITDA margin contracted 500bps to 18.8% (est.:19.6%). We expect a strong recovery with growth of 28%/34% in H2FY21/FY22, led by Automotive and Domestic Industrial segments. In addition, customer additions and widening of product portfolio should support growth in FY22. Our positive view is underpinned by BHFC’s leadership position in automotive forgings, focus on diversification and expected recovery in the core segments. Medium-term performance will be also aided by high-potential segments such as Defense, Railways, Aerospace and Aluminum parts.


Outlook


We expect revenue/earnings CAGRs at 11%/24% over FY20-23E. We retain Buy with a revised TP of Rs601, based on 25x P/E for the standalone business on FY23E (Sep’22E earlier). Retain OW stance in EAP.


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.

Broker Research
first published: Nov 13, 2020 12:30 pm

stay updated

Get Daily News on your Browser
Sections