Bharat Forge Limited, a dynamic Indian multinational powerhouse, stands at the forefront of innovation and excellence across a diverse spectrum of industries. With a robust presence in forging, automotive, energy, construction and mining, railways, marine, aerospace, and defense sectors, Bharat Forge is a pivotal player in the global market.
At its core, the company specializes in manufacturing and marketing forged and machined components for both the automotive and industrial sectors. With a proven track record of precision engineering and a commitment to cutting-edge technology, Bharat Forge presents an enticing investment opportunity for those seeking to be part of a forward-thinking, growth-driven enterprise.
For a comprehensive insight into the company’s endeavors and prospects, delve into the full article below.
About Bharat Forge
Bharat Forge, boasting a substantial market capitalization of ₹51,818 Crores and a current share price of ₹1,113, presents an attractive prospect for investors. It holds the distinction of being India’s largest manufacturer and exporter of automotive components, along with a prominent role as a leading manufacturer of industrial components.
Additionally, Bharat Forge diversifies its portfolio by producing critical components for wind, hydro, and nuclear applications, as well as serving the defense and aerospace sectors. With its varied product range, a strong presence in international markets, and a rich history dating back to its founding in 1961, Bharat Forge stands as a stalwart in the market under the astute leadership of Baba Kalyani, the founder’s son. This company’s forward-looking approach and solid market position make it an appealing choice for investors seeking to align with a pioneering industry leader.
Bharat Forge Q3 FY24 Results: Summary and Key points
- Bharat Forge Ltd’s Q3 FY24 saw a remarkable surge in consolidated net profit by over 220% YoY to Rs 254.45 crore, alongside a 15.7% YoY increase in revenue to Rs 3922.96 crore.
- EBITDA witnessed a substantial growth of 30.9% to Rs 645 crore, with margins expanding to 28.5%, indicating effective cost management and a favorable product mix strategy.
- Despite challenges in sectors like Oil & Gas and Agri, the defense business significantly boosted revenues.
- Overseas operations showed promise, particularly in North America and the US, despite subdued performance in Europe.
- The company’s strategic focus on new business acquisitions and expansion into promising sectors like Mining & Construction and Aerospace indicates proactive growth initiatives.
- Plans for raising funds of Rs 500 crore and an interim dividend declaration of Rs 2.5 per share underscore the company’s confidence in its financial position and future prospects.
- With a robust balance sheet and proactive measures, Bharat Forge Ltd is poised to capitalize on emerging opportunities both domestically and internationally, ensuring sustained growth in the foreseeable future.
Below are the trading platforms that you can use to purchase Bharat Forge shares:
➤ Zerodha
➤ Upstox
➤ Groww
➤ AngelOne
➤ ICICIDirect
| When | Maximum Price | Minimum Price |
| March 2024 | 1,119.80 | 973.74 |
| April 2024 | 1,087.18 | 945.38 |
| May 2024 | 1,071.12 | 931.41 |
| June 2024 | 1,109.68 | 964.94 |
| July 2024 | 1,098.58 | 955.29 |
| August 2024 | 1,142.52 | 993.50 |
| September 2024 | 1,188.23 | 1,033.24 |
| October 2024 | 1,164.93 | 1,012.98 |
| November 2024 | 1,211.52 | 1,053.50 |
| December 2024 | 1,223.64 | 1,064.03 |
In March 2024, Bharat Forge’s stock is anticipated to reach its maximum price at 1,119.80 and its minimum price at 973.74, showcasing potential fluctuations in the market. As April approaches, investors foresee Bharat Forge’s shares peaking at 1,087.18 and dipping to a low of 945.38, reflecting ongoing market dynamics and investor sentiment. Moving into May, Bharat Forge’s stock is projected to experience highs of 1,071.12 and lows of 931.41, as market conditions continue to influence trading patterns. In December, it’s expected that Bharat Forge’s shares will hit a maximum of 1,223.64 and a minimum of 1,064.03, indicating potential year-end fluctuations in the market.
| When | Maximum Price | Minimum Price |
| January 2025 | 1,224.86 | 942.20 |
| February 2025 | 1,227.32 | 944.09 |
| March 2025 | 1,253.09 | 963.92 |
| April 2025 | 1,228.52 | 945.02 |
| May 2025 | 1,192.74 | 917.49 |
| June 2025 | 1,246.41 | 958.78 |
| July 2025 | 1,221.97 | 939.98 |
| August 2025 | 1,259.77 | 969.05 |
| September 2025 | 1,274.88 | 980.68 |
| October 2025 | 1,308.03 | 1,006.18 |
| November 2025 | 1,340.73 | 1,031.33 |
| December 2025 | 1,401.06 | 1,077.74 |
Throughout January 2025, it’s predicted that Bharat Forge’s stock will reach its highest point at 1,224.86 and its lowest at 942.20, showcasing potential fluctuations in the market as the new year begins. As February progresses, investors expect Bharat Forge’s shares to peak at 1,227.32 and drop to a low of 944.09, reflecting the ongoing volatility in market conditions. March is anticipated to see Bharat Forge’s stock soaring to a maximum of 1,253.09 and sliding to a minimum of 963.92, highlighting the continued influence of market dynamics on trading trends. Looking ahead to December, Bharat Forge’s shares are forecasted to reach a maximum of 1,401.06 and a minimum of 1,077.74, indicating potential year-end fluctuations in the market.
| When | Maximum Price | Minimum Price |
| January 2026 | 1,443.09 | 1,110.07 |
| February 2026 | 1,480.10 | 1,138.54 |
| March 2026 | 1,537.82 | 1,182.94 |
| April 2026 | 1,507.67 | 1,159.74 |
| May 2026 | 1,463.76 | 1,125.97 |
| June 2026 | 1,529.62 | 1,176.63 |
| July 2026 | 1,499.63 | 1,153.56 |
| August 2026 | 1,546.01 | 1,189.24 |
| September 2026 | 1,600.12 | 1,230.86 |
| October 2026 | 1,641.73 | 1,262.87 |
| November 2026 | 1,682.77 | 1,294.44 |
| December 2026 | 1,724.84 | 1,326.80 |
| When | Maximum Price | Minimum Price |
| January 2027 | 1,759.33 | 1,353.33 |
| February 2027 | 1,804.45 | 1,388.04 |
| March 2027 | 1,874.82 | 1,442.17 |
| April 2027 | 1,838.06 | 1,413.89 |
| May 2027 | 1,784.52 | 1,372.71 |
| June 2027 | 1,864.83 | 1,434.48 |
| July 2027 | 1,828.26 | 1,406.35 |
| August 2027 | 1,884.80 | 1,449.85 |
| September 2027 | 1,950.77 | 1,500.59 |
| October 2027 | 2,001.49 | 1,539.61 |
| November 2027 | 2,051.53 | 1,578.10 |
| December 2027 | 2,102.82 | 1,617.55 |
| When | Maximum Price | Minimum Price |
| January 2028 | 2,144.87 | 1,649.90 |
| February 2028 | 2,199.87 | 1,692.21 |
| March 2028 | 2,285.67 | 1,758.21 |
| April 2028 | 2,240.85 | 1,723.73 |
| May 2028 | 2,175.58 | 1,673.52 |
| June 2028 | 2,273.48 | 1,748.83 |
| July 2028 | 2,228.91 | 1,714.54 |
| August 2028 | 2,297.84 | 1,767.57 |
| September 2028 | 2,378.26 | 1,829.43 |
| October 2028 | 2,440.10 | 1,877.00 |
| November 2028 | 2,501.10 | 1,923.92 |
| December 2028 | 2,563.63 | 1,972.02 |
| When | Maximum Price | Minimum Price |
| January 2029 | 2,614.90 | 2,011.46 |
| February 2029 | 2,681.95 | 2,063.04 |
| March 2029 | 2,786.55 | 2,143.50 |
| April 2029 | 2,731.91 | 2,101.47 |
| May 2029 | 2,652.34 | 2,040.26 |
| June 2029 | 2,771.69 | 2,132.07 |
| July 2029 | 2,717.35 | 2,090.27 |
| August 2029 | 2,801.39 | 2,154.91 |
| September 2029 | 2,899.44 | 2,230.34 |
| October 2029 | 2,974.82 | 2,288.33 |
| November 2029 | 3,049.19 | 2,345.53 |
| December 2029 | 3,125.42 | 2,404.17 |
| When | Maximum Price | Minimum Price |
| January 2030 | 3,187.93 | 2,452.26 |
| February 2030 | 3,269.67 | 2,515.13 |
| March 2030 | 3,397.19 | 2,613.22 |
| April 2030 | 3,330.58 | 2,561.98 |
| May 2030 | 3,233.57 | 2,487.36 |
| June 2030 | 3,379.08 | 2,599.29 |
| July 2030 | 3,312.83 | 2,548.33 |
| August 2030 | 3,415.28 | 2,627.14 |
| September 2030 | 3,534.82 | 2,719.09 |
| October 2030 | 3,626.73 | 2,789.79 |
| November 2030 | 3,717.39 | 2,859.53 |
| December 2030 | 3,810.33 | 2,931.02 |
Throughout 2030, Bharat Forge’s stock is expected to experience significant fluctuations in response to evolving market dynamics. In January, it is anticipated to reach its peak at 3,187.93, reflecting investor optimism, while also potentially bottoming out at 2,452.26 amid market uncertainties. As the year progresses, February may see highs of 3,269.67 and lows of 2,515.13, showcasing ongoing volatility. March presents a pivotal period with the stock projected to soar to 3,397.19 but also possibly declining to 2,613.22. The following months continue this trend, culminating in December where the stock could peak at 3,810.33 but also hit a low of 2,931.02, highlighting the importance of strategic investment approaches amidst market fluctuations.
Financial Condition of Bharat Forge: Last 5 years
| Financial | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Sales (Rs. Crores) | 10,146 | 8,056 | 6,336 | 10,461 | 12,910 |
| Expenses (Rs. Crores) | 8,098 | 6,984 | 5,504 | 8,478 | 11,174 |
| Operating Profit (Rs. Crores) | 2,048 | 1,072 | 832 | 1,983 | 1,737 |
| Other Income (Rs. Crores) | 199 | 109 | -138 | 288 | 124 |
| Interest (Rs. Crores) | 127 | 171 | 108 | 160 | 299 |
| Depreciation (Rs. Crores) | 521 | 548 | 612 | 730 | 736 |
| Profit before Tax (Rs. Crores) | 1,599 | 462 | -25 | 1,381 | 827 |
| Tax % | 35% | 24% | -399% | 22% | 39% |
| Net Profit (Rs. Crores) | 1,033 | 349 | -127 | 1,077 | 508 |
| Earnings Per Share (Rs.) | 22.17 | 7.51 | -2.71 | 23.23 | 11.35 |
| Dividend Payout % | 23% | 47% | -74% | 30% | 62% |
Bharat Forge’s financial data over the past five years reveals a compelling investment opportunity. The company’s sales have demonstrated significant growth, reaching ₹12,910 Crores in 2023, up from ₹10,146 Crores in 2019, highlighting its strong market presence and sector diversification.
Despite increased expenses, which rose to ₹11,174 Crores in 2023, Bharat Forge has consistently maintained a healthy operating profit. This resilience is particularly notable during challenging times, such as 2021, when expenses temporarily exceeded sales.
Furthermore, other income and net profit have generally shown an upward trend, indicating financial stability and profitability. Earnings per share (EPS) has consistently improved, currently standing at 11.35, signaling the potential for shareholder value.
Additionally, the company’s dividend payout, though varying, reflects a commitment to rewarding shareholders, with a current payout ratio of 62%.
In summary, Bharat Forge’s financial data, along with its favorable P/E ratio and a solid dividend payout, positions the company as a promising investment. With a history of resilience and consistent growth, it offers stability and potential in the dynamic financial market.
FAQS
As of March 18th, 2024, Bharat Forge’s share price stands at ₹1,113.
What is the market capitalization of Bharat Forge?
The market capitalization of Bharat Forge is ₹51,818 Crores.
What is the Price-to-Earnings (P/E) ratio for Bharat Forge?
Bharat Forge’s P/E ratio is currently 62.4.
The share price target for Bharat Forge in 2025 is projected to range between ₹942.20 and ₹1,401.06.
The share price target for Bharat Forge in 2030 is forecasted to fall between ₹2,452.26 and ₹3,810.33.
How has Bharat Forge’s revenue grown over the past five years?
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Conclusion
In conclusion, Bharat Forge presents a compelling investment opportunity with its substantial market cap and consistent revenue growth. Its current market cap of ₹51,818 Crores and consistent revenue growth over the past five years demonstrate the company’s significant market presence and the potential for capital appreciation.
However, the high stock Price-to-Earnings (P/E) ratio suggests caution, as it may indicate an elevated share price relative to earnings. The modest dividend yield and relatively moderate return on capital employed (ROCE) and return on equity (ROE) percentages also warrant consideration.Bharat Forge’s dividend yield of 0.62% may not be particularly attractive for income-oriented investors, given the modest dividend payouts. Moreover, the return on capital employed (ROCE) and return on equity (ROE) percentages, though positive, are relatively moderate at 7.70% and 6.88%, respectively.
Investors should carefully assess their risk tolerance, investment goals, and portfolio diversification strategy before considering an investment in Bharat Forge. While the company has shown consistent revenue growth and holds a substantial market cap, the high P/E ratio and lower dividend yield may not align with every investor’s preferences. As with any investment, conducting thorough research, considering personal financial objectives, and consulting with a financial advisor are essential steps to make an informed decision.
What did we learn?
- 1 About Bharat Forge
- 2 Bharat Forge Q3 FY24 Results: Summary and Key points
- 3 How to purchase Bharat Forge Shares?
- 4 Bharat Forge Share Price Target: 2024 To 2030
- 5 Financial Condition of Bharat Forge: Last 5 years
- 6 FAQS
- 6.1 What is Bharat Forge’s current share price?
- 6.2 What is the market capitalization of Bharat Forge?
- 6.3 What is the Price-to-Earnings (P/E) ratio for Bharat Forge?
- 6.4 What is the expected share price target for Bharat Forge in 2025?
- 6.5 What is the expected share price target for Bharat Forge in 2030?
- 6.6 How has Bharat Forge’s revenue grown over the past five years?
- 7 Also Read:
- 8 Conclusion
