This commercial vehicle manufacturer stock is trending on October 6

This commercial vehicle manufacturer stock is trending on October 6

Indian Market
by 5paisa Research Team Last Updated: 2022-10-06T11:11:11+05:30

The shares surged 8% on the day.

On October 6, the market is trading in green. At 10:55 am, the S&P BSE Sensex is at 58456, up 0.67% on the day, while NIFTY50 is up 0.69% and trading at 17,394.25 . About sectoral performance, Metal is the top gainer, while Capital Goods and Realty are the top losers. Regarding stock-specific action, Bharat Forge Ltd is among the top gainers.

The shares of Bharat Forge Ltd surged 8% and are trading at Rs 765.4. The stock opened at Rs 724 and since has made an intraday high and low of Rs 772 and Rs 724, respectively.

Bharat Forge manufactures and sells forged and machined components for the automotive and industrial sectors. It is a leading player in the global automotive forging space, specialising in the commercial vehicle chasis and engine component segment.

It has a diversified global customer base including the top five CV and PV manufacturers in the world. It is a major provider of crankshafts and front-axle beams to CV OEMs in India, Europe, and North America.

FY22 was a very successful year for the company when the highest ever sales and net profit figures were recorded. On a consolidated basis, the FY22 sales and net profit stood at Rs 10461 crore and Rs 1077 crore, respectively. As per the FY22 period ending the company has ROE and ROCE of 15.4% and 11.5%, respectively.

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 2851 crore, a YoY improvement of 35.24%. However, its Q1FY23 net profit only increased slightly by 4.4% and came at Rs 160 crore.

About the shareholding pattern, 45.25% of the stake is owned by the promoters, 18.82% by FIIs, 24.33% by DIIs, 0.16% by Government, and the rest by 11.44% by non-institutional investors.

The company has a market capitalisation of Rs 35750 crore and is currently trading at a PE multiple of 28.53x. The stock has a 52-week high and low of Rs 848 and Rs 595.85, respectively.


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