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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Samvardh. Mothe.

Bharat Forge

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Why is Bharat Forge Ltd. ?

Healthy long term growth as Net Sales has grown by an annual rate of 20.13% and Operating profit at 111.98%

Positive results in Sep 25

OPERATING PROFIT TO INTEREST(Q) Highest at 9.06 times
DEBT-EQUITY RATIO(HY) Lowest at 0.71 times
NET SALES(Q) Highest at Rs 4,031.93 cr

With ROCE of 12.8, it has a Fair valuation with a 5.1 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 1.80%, its profits have risen by 3.8% ; the PEG ratio of the company is 57.3

High Institutional Holdings at 45.88%

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

With its market cap of Rs 66,624 cr, it is the biggest company in the sector and constitutes 46.50% of the entire sector

Its annual Sales of Rs 15,268.83 are 33.38% 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, Medium Return

Absolute

Risk Adjusted

Volatility

Bharat Forge

1.57%

0.06

30.76%

Sensex

4.84%

0.42

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.13%

EBIT Growth (5y)

111.98%

EBIT to Interest (avg)

5.25

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

0.50

Sales to Capital Employed (avg)

0.90

Tax Ratio

34.19%

Dividend Payout Ratio

12.24%

Pledged Shares

Institutional Holding

45.88%

ROCE (avg)

11.12%

ROE (avg)

12.80%

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

7.12

EV to EBIT

39.74

EV to EBITDA

26.38

EV to Capital Employed

5.07

EV to Sales

4.67

PEG Ratio

57.30

Dividend Yield

0.61%

ROCE (Latest)

12.75%

ROE (Latest)

11.55%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

11What is working for the Company

OPERATING PROFIT TO INTEREST(Q)

Highest at 9.06 times

DEBT-EQUITY RATIO(HY)

Lowest at 0.71 times

NET SALES(Q)

Highest at Rs 4,031.93 cr

PBDIT(Q)

Highest at Rs 725.66 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 18.00%

PBT LESS OI(Q)

Highest at Rs 403.32 cr.

PAT(Q)

Highest at Rs 299.20 cr.

EPS(Q)

Highest at Rs 6.26

-3What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 844.90 cr

Loading Valuation Snapshot...

Here's what is working for Bharat Forge

Operating Profit to Interest - Quarterly

Highest at 9.06 times and Grown

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales - Quarterly

Highest at Rs 4,031.93 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 725.66 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 18.00%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 403.32 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 299.20 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 6.26

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Lowest at 0.71 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Bharat Forge

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 844.90 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents