Bharat Forge Ltd. (BHARATFORG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Craftsman Auto

Bosch

Samvardh. Mothe.

Sona BLW Precis.

Endurance Tech

Uno Minda

Exide Inds.

Schaeffler India

Tube Investments

Bharat Forge

Dhoot Transmissi

Why is Bharat Forge Ltd. ?

Healthy long term growth as Operating profit has grown by an annual rate 23.31%

Negative results in Jun 26

PAT(Q) At Rs -89.73 cr has Fallen at -130.5% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at 7.91 times
DEBTORS TURNOVER RATIO(HY) Lowest at 4.30 times

With ROCE of 13.3, it has a Fair valuation with a 6.9 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 59.99%, its profits have risen by 13.1% ; the PEG ratio of the company is 6.3

High Institutional Holdings at 47.38%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

Even though the market (BSE500) has generated negative returns of -2.82% in the last 1 year, the stock has been able to generate 59.99% returns

With its market cap of Rs 93,705 cr, it is the biggest company in the sector and constitutes 46.58% of the entire sector

Its annual Sales of Rs 17,542.84 are 33.99% of the industry

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bharat Forge should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bharat Forge for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Bharat Forge

59.99%

2.00

30.03%

Sensex

-9.29%

-0.69

13.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.20%

EBIT Growth (5y)

23.31%

EBIT to Interest (avg)

5.14

Debt to EBITDA (avg)

3.08

Net Debt to Equity (avg)

0.54

Sales to Capital Employed (avg)

0.94

Tax Ratio

44.98%

Dividend Payout Ratio

43.18%

Pledged Shares

Institutional Holding

47.38%

ROCE (avg)

12.14%

ROE (avg)

12.50%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

10.03

EV to EBIT

51.78

EV to EBITDA

34.17

EV to Capital Employed

6.88

EV to Sales

5.77

PEG Ratio

6.30

Dividend Yield

0.42%

ROCE (Latest)

13.28%

ROE (Latest)

12.27%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

NET SALES(Q)

Highest at Rs 4,639.94 cr

-16What is not working for the Company

PAT(Q)

At Rs -89.73 cr has Fallen at -130.5% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at 7.91 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.30 times

PBT LESS OI(Q)

Lowest at Rs 345.20 cr.

EPS(Q)

Lowest at Rs -1.88

Loading Valuation Snapshot...

Here's what is working for Bharat Forge

Net Sales - Quarterly

Highest at Rs 4,639.94 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Here's what is not working for Bharat Forge

Profit After Tax (PAT) - Quarterly

At Rs -89.73 cr has Fallen at -130.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 293.94 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 7.91 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 345.20 cr has Fallen at -14.9% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 405.74 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 345.20 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -1.88

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debtors Turnover Ratio- Half Yearly

Lowest at 4.30 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Non Operating Income - Quarterly

Highest at Rs 57.25 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income