Bharat Forge slips as foreign brokerage maintains sell rating

Bharat Forge fell 2.88% to Rs 725 at 11:15 IST on BSE on reports that a foreign brokerage has maintained its sell rating on the stock citing weak earnings outlook.

Meanwhile, the S&P BSE Sensex was down 32.28 points or 0.12% at 27,782.90.

The stock declined on heavy volumes. On BSE, so far 3.44 lakh shares were traded in the counter as against average daily volume of 75,420 shares in the past one quarter. The stock hit a high of Rs 740 and a low of Rs 722.50 so far during the day. The stock had hit a 52-week low of Rs 686.80 on 24 June 2016. The stock had hit a 52-week high of Rs 1,292.50 on 20 August 2015. The stock had underperformed the market over the past one month till 13 July 2016, advancing 0.3% compared with 5.37% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 9.98% as against Sensex's 8.54% rise.

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

The foreign brokerage has reportedly cut its earnings per share (EPS) estimates for Bharat Forge by 11% for FY 2017-18 on weak export outlook. The brokerage reportedly said that the company's exports will remain under stress and margins will decline in the current financial year due to operating leverage.

Bharat Forge's net profit fell 19% to Rs 164.52 crore on 17.4% decline in net sales to Rs 987.07 crore in Q4 March 2016 over Q4 March 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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