Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 28140.18 Crore) operating in Auto Ancillaries sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1761.11 Crore, up 24.94 % from last quarter Total Income of Rs 1409.57 Crore and down -5.72 % from last year same quarter Total Income of Rs 1868.05 Crore. Company reported net profit after tax of Rs -206.71 Crore in latest quarter.
Investment Rationale
BHFC has established itself as a dominant players in domestic and global industrial and auto forgings segment with lead market share amongst many global OEMs. They have successfully diversified revenue base beyond auto forgings making significant inroads into oil and gas, defence, aerospace and transportation which total (nonauto) accounts for >40% of standalone top-line vs implying a significant growth in the past 5-7 years. Product innovation & investing in high end capacities ahead of competition has helped gain both first mover advantage and significant cost advantage in niche products reflecting in superior returns/cash flows. The company is further diversifying into aluminum components for global PV market apart from sharpening focus on select large defence projects including its recent EV foray in view will further strengthen long term growth visibility
Promoter/FII Holdings
Promoters held 45.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 23.5 per cent, DIIs 12.6 per cent and public and others 18.2 per cent.
