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HomeSHARE MARKETDefence Sector Share; Strong Results In The Third Quarter; Target After Result

Defence Sector Share; Strong Results In The Third Quarter; Target After Result

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Defence Stocks: The stock of Bharat Forge (NSE: BHARATFORG), a Navratna company of the defence sector, which works in many sectors including defence, aerospace, energy, construction, and automobiles, registered a rise of up to 0.11 percent in early trade on Wednesday. 

After the company’s strong results in the third quarter, there is mixed advice from brokerage houses on the stock. 

Global brokerage has advised Selling the stock while another Brokerage has given the opinion of Underperform.

Bharat Forge Q3 Results

Bharat Forge’s consolidated net profit in the third quarter jumped 221 percent to Rs 254 crore. The company’s consolidated profit in the same quarter of the year was Rs 79 crore. 

The company’s consolidated income increased to Rs 3866 crore during the December 2023 quarter. 

In the same quarter of the previous financial year, the company’s income was Rs 3353 crore. The company’s operating profit (EBITDA) jumped 24 percent to Rs 663 crore.

It stood at Rs 535.1 crore in the same quarter a year ago. The margin increased from 27.4% (YoY) to 29.3%.

Bharat Forge declared an interim dividend. The company will give an interim dividend of Rs 2.5 per equity share to its shareholders. 

The price of the shares is Rs 2 per share. This way, investors will get 125 percent income per share from the interim dividend. 

The record date for payment of dividends is 23 February 2024. Whereas the dividend will be paid on or before March 12, 2024.

Bharat Forge Brokerage Report

Global Brokerage has advised to sell Bharat Forge. The brokerage reduced the target price of the stock to Rs 977. 

According to the brokerage, the company’s Q3 results are above estimates, but the growth momentum will remain slow.

Another Global brokerage has maintained the underperforming rating on Bharat Forge stock.

They reduced the target price of the stock from Rs 1030 to Rs 950. According to the brokerage, Q4 results are above estimates, but growth momentum could be faster. 

The management expects the defence business to proliferate due to new orders, while the export, domestic CV, and PV business may slow down. 

Subsidiary companies remain in the red, due to which consolidated net profit growth is declining.

About Bharat Forge Ltd

Bharat Forge Limited, an Indian-based international manufacturer of critical components and solutions for a variety of industries, including railways, automotive defence, construction, mining and marine, aerospace the oil and gas industry.

The segments of the company comprise Forgings and Other. 

The company is involved in the production, assembly, and selling of machined and forged components, such as aluminum castings that are used in the auto and industrial sectors.

It also engages in the manufacture and assembly of electronic vehicle components. 

The automotive products it manufactures comprise the engine, for example connecting rod, crankshaft emissions/after treatment, and the fuel injection systems;

chassis including the front axle, beams for steering fork, knuckle, and reinforcement brackets, transmission and driveline components, like components for transmission and driveline.

The power products offered by the company include thermal, like gearboxes and shafts; hydro, like rotors and others and wind, like gearboxes and shafts

Fundamental Analysis of Bharat Forge Ltd

Market Cap₹ 50,907 Cr.
Current Price₹ 1,108
52-wk High₹ 1,330
52-wk Low₹744
Stock P/E59.87
Book Value₹ 151
Dividend0.64 %
ROCE7.70 %
ROE6.88 %
Face Value₹ 2.00
P/B Value7.21
OPM15.5 %
EPS₹ 18.3
Debt₹ 7,504 Cr.
Debt to Equity1.07

Bharat Forge Share Price Target 2024 To 2030

Year1st Target2nd Target
2024₹1100₹1349
2025₹1400₹1545
2026₹1600₹1759
2027₹1855₹1958
2028₹2100₹2545
2029₹2648₹2748
2030₹2845₹2944
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Bharat Forge Ltd Shareholding Pattern

Promoters Holding
Dec 202245.26%
Mar 202345.26%
June 202345.26%
Sept 202345.26%
Dec  202345.26%
FII Holding
Dec 202217.88%
Mar 202316.17%
June 202315.79%
Sept 202316.28%
Dec  202316.60%
DII Holding
Dec 202226.09%
Mar 202327.70%
June 202328.61%
Sept 202327.95%
Dec  202327.74%
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Govt. Holding
Dec 20220.18%
Mar 20230.18%
June 20230.18%
Sept 20230.18%
Dec  20230.18%
Public Holding
Dec 202210.60%
Mar 202310.70%
June 202310.17%
Sept 202310.35%
Dec  202310.22%

Bharat Forge Ltd Share: Last 5 Years’ Financial Condition

To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years. 

However, investors should be aware of the risks and the market conditions before making any investment decision.

Last 5 Years’ Sales:

2019₹10,146 Cr
2020₹8,056 Cr
2021₹6,336 Cr
2022₹10,461 Cr
2023₹15,147 Cr
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Last 5 Years’ Net Profit:

2019₹1,033 Cr
2020₹349 Cr
2021₹-127 Cr
2022₹1,077 Cr
2023₹811 Cr

Last 5 Years’ Debt-To-Equity Ratio:

20190.7
20200.74
20210.85
20220.86
20231.02

Last 10 Years’ Profit Growth:

10 Years:6%
5 Years:-11%
3 Years:7%
Current Year:33%

Last 10 years’ Return on Equity (ROE):

10 Years:14%
5 Years:11%
3 Years:9%
Last Year:7%

Sales Growth Over 10 Years:

10 Years:10%
5 Years:9%
3 Years:17%
Current Year:18%

Conclusion

This article is a complete guide about Bharat Forge Ltd Share.

These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses. 

Also, We have talked in detail about the share’s future prospects and growth potential.

Hopefully, these informations will help you in your further investment. 

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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We are here to provide timely updates about the stock market and financial products to help you make better investment choices. Do your own research before any investment.

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