Bharat Forge gains after rise in North America Class 8 truck orders

Bharat Forge rose 2.04% to Rs 889.30 at 12:20 IST on BSE after improvement in August orders for North America Class 8 trucks on month-on-month basis.

Meanwhile, the BSE Sensex was up 32.04 points, or 0.11%, to 29,010.06.

On BSE, so far 2.16 lakh shares were traded in the counter, compared with average daily volume of 1.19 lakh shares in the past one quarter. The stock hit a high of Rs 907 and a low of Rs 888.90 so far during the day. The stock hit a 52-week high of Rs 1,133.40 on 4 September 2015. The stock hit a 52-week low of Rs 686.80 on 24 June 2016. The stock had outperformed the market over the past 30 days till 6 September 2016, rising 5.54% compared with 2.82% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.66% as against Sensex's 7.24% rise.

The large-cap company has equity capital of Rs 46.56 crore. Face value per share is Rs 2.

As per FTR release, preliminary North America Class 8 truck orders increased 34.62% to 14,000 units in August 2016 compared with 10,400 units sold in July 2016.

About 30% of Bharat Forge's revenue reportedly comes from North America truck market.

However, the Class 8 order activity for August was the weakest for that month since 2010 and down 35% in August 2016 over August 2015. Class 8 orders for the last twelve months have totaled 206,000 units.

Bharat Forge's net profit fell 37.7% to Rs 122.10 crore on 20.2% decline in net sales to Rs 888.76 crore in Q1 June 2016 over Q1 June 2015.

Bharat Forge is the flagship company of Kalyani Group. It is a global provider of high performance, innovative, safety & critical components and solutions to various industrial sectors including automotive, oil & gas, power, construction & mining, aerospace and rail & marine.

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