Bharat Forge’s revenue CAGR is expected at 19% in FY22-24E, led by the cyclical recovery in the underlying Auto and Industrial segments in both domestic and overseas markets. Moreover, nascent segments, such as Defense, Aerospace, Railways, Power electronics and Aluminum components, have the potential to cross USD 100mn each in revenues in the medium term.
Our positive view on Bharat Forge is underpinned by its leadership position in automotive forgings, focus on diversification, and an expected recovery in the core segments.
We have a buy rating on the stock with a Dec’22 target price of Rs 950, based on 27x P/E for the standalone business on Dec’23E EPS
Bharat Forge was quoting at Rs 807.35, up Rs 6.80, or 0.85 percent on the BSE.
News Source:- MoneyControl