Limited Period Offer:Be a PRO for 1 month @Rs49/-Multiple payment options available. Know More

Hold Bharat Forge; target of Rs 439: Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Bharat Forge with a target price of Rs 439 in its research report dated November 11, 2020.

November 18, 2020 / 01:56 PM IST
  • bselive
  • nselive
Todays L/H

Prabhudas Lilladher's research report on Bharat Forge

BHFC’s 2QFY21 performance was weak led by tonnage decline of ~24% YoY to 40.8k (PLe 44.6k). The sharp decline in volumes was led by ~33%/44% YoY exports decline in industrial/auto segments (~52% of SA revenues). While there has been some initial pickup in class 8 trucks (~19% of S/A revenues) along with ramp-up in PVs, the outlook for industrial remain weak with no major improvement in global Oil & Gas, aerospace segments. On the other hand, domestic auto/industrial segments performed well with +1%/-6% YoY. We believe that BHFC is much better placed than previous cycles with new products/customer additions both in auto/non-auto segments. However, the same is well captured in recent valuations expansions at 25x/20x FY22/23 consol EPS.


Hence we continue to maintain Hold with a revised target price of Rs439 (earlier Rs446) at 19x Sep-20 EPS. We cut FY21/22/23 EPS by ~16%/6/%/1% to factor in lower volumes especially in non-auto division.

For all recommendations report, click here

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

Broker Research
first published: Nov 18, 2020 01:56 pm

stay updated

Get Daily News on your Browser