This forging stock was trending today!

This forging stock was trending today!

Indian Market
by 5paisa Research Team Last Updated: 2022-12-09T09:10:30+05:30

Products of this company are used in automobiles, defence, oil & gas, aerospace, locomotives, marine, energy, construction, and mining sector.

On December 8, the market closed in green. The shares of Bharat Forge Ltd surged 4% and closed trading at Rs 871.2. The stock opened at Rs 834.05 and made an intraday high and low of Rs 878 and Rs 834.05, respectively. The company has a market capitalisation of Rs 40,591 crore, while the stock is trading at a PE multiple of 35x.

The company is a leading player in the global automotive forging space, specialising in the commercial vehicle chassis and engine component segment. 

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 chassis 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.

The company had a very successful year in FY22, recording its highest-ever sales and net profit number. Sales and net profit for FY22 on a combined basis were Rs 10461 crore and Rs 1077 crore, respectively. The company's ROE and ROCE as of the end of the FY22 period are 15.4% and 11.5%, respectively.  

For the latest September quarter, on a consolidated basis, the company generated revenue of Rs 3076 crore, a YoY improvement of 29%. However, its Q1FY23 net profit declined by almost 47% and came in at Rs 142 crore.

About the shareholding pattern, 45.25% of the stake is owned by the promoters, 19.3% by FIIs, 24.55% by DIIs, 0.16% by the Government of India, and the rest by 10.72% by non-institutional investors.  

The stock has a 52-week high and low of Rs 897 and Rs 595.85, respectively.


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