Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 32637.76 Crore) operating in Auto Ancillaries sector.
Bharat Forge Ltd. key Products/Revenue Segments include Steel Forgings, Scrap, Export Incentives, Job Work, Dies & Tools and Wind Mills for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2423.90 Crore, up 12.82 % from last quarter Total Income of Rs 2148.39 Crore and up 71.96 % from last year same quarter Total Income of Rs 1409.57 Crore. Company reported net profit after tax of Rs 281.19 Crore in latest quarter.
Investment Rationale
BFL’s strategy to shift to new technological products and ramp-up in Aluminium forging in US & India for new product development are on track and will bring value migration per vehicle in the long run. The brokerage believes, domestic demand visibility looks attractive and expect margin expansion owing to the growth coming from the defence sector and sustained recovery in the auto space. However, the rise in Europe’s covid cases and thereafter lockdown is looming as a cause of worry for near term. It values BFL on 16x EV/EBITDA on FY23E with a target price of Rs.861 and recommend Buy rating at CMP.
Promoter/FII Holdings
Promoters held 44.76 per cent stake in the company as of 30-Sep-2021, while FIIs owned 25.1 per cent, DIIs 13.28 per cent.
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