Bharat Forge jumps after foreign brokerage initiates coverage

Bharat Forge rose 6.82% to Rs 992.80 at 14:43 IST on BSE after a foreign brokerage initiated its coverage on the stock with a 'buy' rating.

Meanwhile, the BSE Sensex was up 84.90 points, or 0.31%, to 27,543.28.

On BSE, so far 1.80 lakh shares were traded in the counter, compared with an average volume of 1.02 lakh shares in the past one quarter.

The stock hit a high of Rs 998.80 and a low of Rs 933 so far during the day. The stock hit a record high of Rs 1,015.80 on 5 December 2014. The stock hit a 52-week low of Rs 319.30 on 28 January 2014.

The stock had underperformed the market over the past one month till 9 January 2015, sliding 1.83% compared with 1.22% fall in the Sensex. The scrip had, however, underperformed the market in past one quarter, sliding 15.32% as against Sensex's 3.08% rise.

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

The brokerage cited robust growth outlook, strong franchise and diversified business mix as key reasons for the stock's upgrade.

Bharat Forge's net profit rose 81% to Rs 174.49 crore on 35% growth in net sales to Rs 1108.88 crore in Q2 September 2014 over Q2 September 2013.

Bharat Forge is a global provider of high performance, innovative, safety & critical components and solutions to various industrial sectors including automotive, oil & gas, aerospace and rail marine.

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