Sunday, June 6, 2021

Bharat Forge Ltd (532760) – Export & defence will strengthen its Balance sheet

Bharat Forge Ltd (532760) closes   at 751.10 with  a   Gain  of   +7.90%%   on    04-June-2021  with formation of  a  Long Red  Candle    on Daily  Price Chart.

About the Company : Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.

Strength : 1.the US government’s $6 trillion budget with focus in multiple areas including transportation is expected to boost demand for commercial vehicles (CV).

2.Profitability of its international subsidiaries have also improved from 5 per cent three years ago to double digits (10 per cent) now.

3.The company has acquired Sanghvi Forgings which will help it tap growth opportunities in the infrastructure and renewal energy space.

4.The strong class 8 commercial vehicle & Industrial segment (oil and gas space with demand coming back on rising crude oil prices )is doing well.

Financials : Bharat Forge Ltd has posted Net Sales / Revenue   of 6336.30 Cr & Net Loss  of - 126.40 Cr in FY2021 and expected to post Net Sales / Revenue   of 8481.30 Cr & Net Profit of 809.30 Cr in FY2022 & Net Sales / Revenue   of 10034.70 Cr & Net Profit of 1140.20 Cr in FY2023.

EPS will be improved from -2.70 in FY2021 to 24.0 in FY2023, RoE from 3.44% to 18.50%, RoA from 1% to 9.02% along with reduction of debt from 1808.50Cr to 1211.00 with increase in Free Cash Flow from 536.90 Cr to 981.40 during the same period.

Valuations  : The Company is now Trading at X 2.59   of its  valuations of its FY2022 earnings with ~159% Premium and X1.84 of its FY2023 earnings with ~84% premium ( We have not valued the company for FY2021 since it has posted Net Loss)

Margin of Safety (1Yr Bond Yield: Value>1 ) is now  0(Zero)  which  makes is attractive .. The  Equity Value Per Share ( Enterprise Value Method ) is  740.70.

If We factor its FY2023 earnings/valuations, its Price arrives at 1056

Disclaimer : We are / may going to take exposure shortly.

Join Us at   Telegram #

Data Source NSE Website | Screener.In  | Capital Line Money Control |

The author tracks economic, behavioural and corporate tends, hoping to gauge good avenues of return based on Fundamental Valuations of Stocks, a follower of EPV method. You can reach me/us at | Twitter # NiftyNext1 |  e-Mail : Mail@NiftyNext.Com  |  Tel +91 8802230836  |  Telegram # TheNiftyNext   |

Manage your investments the right way With MProfit. Visit

Use Our Referral Link to Get 20% DISCOUNT @

No comments:

Post a Comment

Thanks for Your Valuable comments. It will make Us to Serve You in Better Way. For Any STOCKS Query ,Please Call NiftyNext +91 880 2230 836.


The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness. The above recommendations are based on the theory of Technical Analysis and do not reflect the fundamental validity of the Scrip. does 't take any Responsibility for any losses arising from using the Stocks Recommendations.
We( WWW.NIFTYNEXT.COM) are not Registered with Any Regulatory Body in India ie SEBI,NSE,BSE,AMFI or Any Otheres.

Blog Archive