Bharat Forge Ltd
Ticker: BHARATFORG
Decent
68/100
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Investing Reference
Price
1232.60
Market Cap
58929.20
Debt/Equity
0.7264
ROE %
11.487
PB
6.3910
Promoter %
44.072
Pledge %
0.000
1Y Rev Growth %
-3.633
5Y Rev Growth %
13.219
NP Margin %
6.137
NP Margin 5Y Avg %
4.839
Trading Reference
1M Return %
-0.407
6M Return %
14.863
1Y Return %
-16.742
% Away 52W High
22.160
% Away 52W Low
34.109
Daily Volume
373500
Investment Verdict
Risky
Score 51/100 · Position size: 6%
Higher volatility/weak areas. Consider only a small allocation if risk appetite is high.
Trading Verdict
Avoid
Score 29/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Bharat Forge Ltd is currently trading near a key support level, with the 50-day EMA indicating a bullish trend. If it breaks above the resistance level, there is potential for a price increase. However, if it falls below the support, a decline is likely.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Bharat Forge Ltd is a leading global player in the manufacturing of forged and machined components, primarily serving the automotive, aerospace, and defense sectors. With a strong emphasis on innovation and quality, it caters to both domestic and international markets, making it a vital partner for industries seeking reliable and advanced engineering solutions. The company's commitment to sustainability and technological advancement positions it as a forward-thinking leader in the heavy engineering sector.
- Established leader in forged components
- Serves diverse sectors: automotive, aerospace, defense
- Strong focus on innovation and quality
- Global presence with a robust supply chain
- Commitment to sustainability and technology advancement
Investment Thesis
Bharat Forge Ltd stands out as a compelling investment opportunity due to its strong promoter credibility, significant growth potential in digital services, and attractive valuation compared to peers. These factors position the company well for sustained growth and profitability in the evolving market landscape.
- Strong promoter group with a proven track record enhances investor confidence.
- Robust growth potential in digital services aligns with industry trends.
- Attractive valuation compared to peers offers a margin of safety.
- Diversified product portfolio mitigates risks and captures multiple market segments.
- Strategic investments in technology bolster competitive advantage.
Opportunity vs Risk
Opportunities
- Strong demand in defense sector
- Expansion into electric vehicle components
- Growing global market presence
- Strategic partnerships with key players
Risks ⚠️
- Volatility in raw material prices
- Dependence on cyclical industries
- Regulatory changes impacting operations
- Global economic slowdown concerns
Peer Perspective
Bharat Forge Ltd trades at a slight premium to peers like Ashok Leyland and Mahindra & Mahindra, suggesting strong growth potential; however, a focus on margin stability is crucial for a potential rerating.
Future Outlook
Bharat Forge Ltd is well-positioned for growth, driven by strong demand in key sectors. However, successful execution and effective cost control will be crucial to fully capitalize on emerging opportunities.
📊 Stock Investment Checklist (100 Points)
Bharat Forge Ltd • Updated: 2025-09-16 19:57:42
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10BusinessHighThe company operates in the automotive and defense sectors, which are poised for growth due to increasing demand for electric vehicles and defense modernization.
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10GrowthHighBharat Forge has shown consistent revenue and profit growth over the past few years, driven by diversification into new sectors.
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10ProfitabilityHighThe company maintains a healthy ROE and ROCE, with operating cash flow generally exceeding net profit.
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8ValuationHighCurrent P/E and P/B ratios are slightly above industry averages, indicating a premium valuation.
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7BalanceHighThe debt-to-equity ratio is manageable, but liquidity ratios could be improved.
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6GovernanceGoodPromoter holding is strong, but there are some concerns regarding pledging of shares.
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5DriversGoodGrowth drivers include expansion into new markets, but execution risks remain due to global supply chain issues.
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5TechnicalsGoodMarket sentiment is mixed, with some recent volatility in price action.
Final Score & Verdict
Score 68 / 100
• Decent
Bharat Forge Ltd shows potential for growth and profitability, but investors should be cautious of valuation and execution risks.
AI Confidence Score
Instead of just “overall score,” broken into categories:
- Business Strength: 75/100
- Growth Potential: 70/100
- Profitability: 80/100
- Governance: 65/100
- Market Confidence: 72/100