The stock has recorded a day change of 1.21%, outperforming its sector by 1.18% on the same day. Over the last two consecutive trading sessions, Bharat Forge has delivered a cumulative return of 2.63%, indicating a positive short-term trend. Notably, the share price is currently trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, a technical indicator often associated with upward momentum.
In comparison, the broader market benchmark, the Sensex, opened flat with a minor decline of 29.24 points but later traded positively at 84,749.82, marking a 0.09% gain. The Sensex remains 0.64% shy of its own 52-week high of 85,290.06 and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, suggesting a bullish market environment. Mega-cap stocks have been leading the market gains, contributing to the Sensex's modest rise.
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Examining Bharat Forge's annual performance, the stock has generated a return of 6.90% over the past year, compared to the Sensex's 9.24% return in the same period. The 52-week low for the stock was Rs.919.1, highlighting the extent of the recent rally. Bharat Forge holds a commanding position in its sector with a market capitalisation of Rs.66,789 crores, representing 46.50% of the entire Auto Components & Equipments sector. Its annual sales stand at Rs.15,268.83 crores, accounting for 33.38% of the industry’s total sales.
Financial metrics for Bharat Forge reveal a steady operational profile. The company’s net sales have shown an annual growth rate of 20.13%, while operating profit has reached 111.98%. In the September quarter, the operating profit to interest ratio was recorded at 9.06 times, the highest in recent periods, indicating strong earnings relative to interest expenses. The debt-equity ratio for the half-year period was 0.71 times, reflecting a moderate leverage position.
Return on capital employed (ROCE) stands at 12.8%, accompanied by an enterprise value to capital employed ratio of 5.1, suggesting a valuation that is considered fair relative to the company’s capital base. When compared to its peers, Bharat Forge is trading at a discount to average historical valuations, which may be of interest to market participants analysing valuation metrics.
Institutional investors hold a significant stake in Bharat Forge, with 45.88% of shares held by entities with extensive resources and analytical capabilities. This level of institutional holding often reflects confidence in the company’s fundamentals and market position.
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Since hitting its 52-week low of Rs.919.1, Bharat Forge has demonstrated resilience and steady recovery, culminating in the recent peak of Rs.1421.8. The stock’s performance is supported by its leadership in the Auto Components & Equipments sector, where it is the largest company by market capitalisation. The sector itself has been influenced by broader market trends, with the Sensex maintaining a generally positive trajectory and trading above key moving averages.
Overall, Bharat Forge’s attainment of a new 52-week high is a reflection of its sustained operational metrics, sectoral leadership, and favourable market conditions. The stock’s position above multiple moving averages and its outperformance relative to the sector on the day of the new high highlight the momentum behind this milestone.
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