Bharat Forge shares up 2% on bagging Rs 178 crore order from Defence Ministry for supply of Kalyani M4 vehicles

BHARATFORG

Bharat Forge share price was up over 2 percent intraday on February 23 after the company bagged an order worth Rs 178 crore.

Bharat Forge Limited has received an order worth Rs 177.95 crore from the Indian Ministry of Defence for the supply of Kalyani M4 vehicles. Paramount Group and Bharat Forge announced cooperation to manufacture armoured vehicles in India. An agreement was signed by both companies during the International Defence Expo held in Abu Dhabi, the company said in an exchange filing.

“It is intended that the ‘Kalyani M4’ will see service with the Indian armed forces in the very near future. The Kalyani M4 successfully completed a series of extreme vehicle trials in some of the toughest environments,” a statement from the two companies said.

The stock was trading at Rs 602.30, up Rs 14.10, or 2.40 percent at 10:55 hours. It has touched an intraday high of Rs 610 and an intraday low of Rs 589.45.

“We are very pleased to partner with Paramount Group. This collaboration brings together the manufacturing and technology excellence of two leading companies, which have matching synergies and complementary capabilities. The Kalyani M4 is a fantastic new generation vehicle, and we want to position it as the ‘future of protection’ in all markets worldwide,” said Amit Kalyani, Deputy Managing Director at Bharat Forge.

Global research firm UBS has a buy rating on the stock with a target of Rs 720 per share. The research house expects the full impact of cost reduction initiatives to be visible in FY22 and also expect the margin to improve to 28.6 percent/30.5 percent for FY22/FY23.

Domestic brokerage firm Motilal Oswal expects consolidated revenue/EBITDA/PAT to grow at 7 percent/25 percent/42 percent CAGR (FY20-23E). The stock trades at 39.1x/24.1x FY22E/FY23E consolidated EPS. It maintained a buy rating with a target price of Rs 742 per share.

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News Source:- Moneycontrol

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