Bharat Forge moves north on foreign brokerage upgrade

Bharat Forge rose 1.36% to Rs 942.60 at 11:18 IST on BSE on reports that a foreign brokerage has upgraded the stock to buy from sell.

Meanwhile, the S&P BSE Sensex was down 61.20 points or 0.22% at 28,045.01.

On BSE, so far 65,000 shares were traded in the counter as against average daily volume of 1.40 lakh shares in the past one quarter. The stock hit a high of Rs 954 and a low of Rs 938.95 so far during the day. The stock had hit a 52-week high of Rs 969.50 on 23 September 2016. The stock had hit a 52-week low of Rs 686.80 on 24 June 2016. The stock had outperformed the market over the past one month till 6 October 2016, surging 6.71% compared with 3.01% fall in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 21.05% as against Sensex's 3.46% rise.

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

The foreign brokerage reportedly sees likelihood of a cyclical recovery for Bharat Forge. New business' contribution could increase post FY 2018, it said. The brokerage expects Bharat Forge stock to deliver 70% return in next two and half years.

Bharat Forge's net profit fell 37.7% to Rs 122.06 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.

Powered by Capital Market - Live News