Shares of Bharat Forge fell as much as 4 percent to Rs 753.80 on the National Stock Exchange today after CNBC-TV18 reported that brokerage firm CLSA India has downgraded the stock to ‘sell’ from ‘buy’ citing a likely slowdown in export growth.
The brokerage firm also cut its price target for the stock by 23.3 percent to Rs 690 as it believes that valuations are “overly high”.
The firm depends highly on components it exports to Class 8 truck manufacturers in the US for its revenues, even though the company is diversifying its product base. However, Class 8 truck orders in North America have been on a downward trajectory over the past few months owing to the global semiconductor shortage.
News Source:- Moneycontrol