Bharat Forge: Valuation Surges As Order Inflows Inspire Confidence

Bharat Forge: Valuation Surges As Order Inflows Inspire Confidence

Kalyani Group’s flagship firm Bharat Forge Ltd’s shares jumped 3.5% on Tuesday, energized by strong order flows from the US market. A 68% year-on-year jump in orders from North America’s Class-8 truck segment was the trigger.

That augurs well for Bharat Forge, as this segment accounts for 10-12% of its revenue. Nor does this appear to be a one-off surge, as order rose by 168% year-on-year in the previous month too. After a long-drawn downtrend, orders from this segment could grow at around 12-15% per annum over the next two fiscal years.

But this is not all. The firm garners around two-fifths of its revenue from the US region that has shown steady signs of growth in the last two quarters. Higher exports therefore should aid revenue growth. Read More…

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