Motilal Oswal's research report on Bharat Forge
BHFC’s 1QFY24 standalone performance beats estimates, led by betterthan-expected volumes at 67.8k tons (vs. est. 64.3k tons) and realizations of INR313.9k/ton (vs. est. INR311.2k/ton). The company has guided toward positive demand outlook across divisions. Additionally, defence business contributed INR2.5b in 1Q and is expected to be ~10% of revenue mix in FY24, driven by order backlog of INR22-23b to be executed over the next 18 months. We have changed our EPS est by -4%/+4.5% for FY24E/25E to factor in for slower-than-expected rampup in US facility and execution of defence orders in the coming quarters.
Outlook
We reiterate our BUY rating on the stock with a TP of INR1,135 (based on 25x Sep-25E consolidated EPS + INR101 for 2 gun platforms).
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
