Bharat Forge hits 52-week high as arm secures order worth Rs 850 crore

In an exchange filing on August 21, the company said that Kalyani Strategic Systems, Bharat Forge's wholly-owned subsidiary bagged two export orders to be executed over 18 months timeline

Shares of Bharat Forge gained 2 per cent to hit a 52-week high of Rs 987 per share on the BSE in Monday's intra-day trade as its wholly-owned subsidiary secured orders worth Rs 850 crore.
 

In an exchange filing on August 21, the company said that Kalyani Strategic Systems, Bharat Forge's wholly-owned subsidiary bagged two export orders for supply of components and armoured vehicle chassis to be executed over 18 months timeline. 
 

The order is subjected to necessary government approvals, the company added.
 

Kalyani Strategic Systems is a 100 per cent subsidiary of Bharat Forge that drives defence business initiatives. 
 

Bharat Forge, on the other hand, is the flagship company of $3 billion Kalyani Group, that provides safety, critical components, and solutions across sectors like automobile, railways, defence, construction, and mining.
 

So far this calendar year (CY23), shares of Bharat Forge has surged 12 per cent, as againt 6 per cent rise in the S&P BSE Sensex.
 

In the June-ended quarter, the company's consolidated net profit rose 32 per cent year-on-year (YoY) to Rs 213.73 crore, while revenue from operations increased 35 per cent YoY.

Earnings before interest, tax, depreciation, and amortisation (Ebitda), too, for the quarter rose 26.1 per cent YoY to Rs 548.7 crore, whereas Ebitda margin expanded to 25.8 per cent against 24.7 per cent, in the year-ago period.

Total expenses, however, climbed to Rs 3,602.48 crore in Q1FY24 as against Rs 2,643.95 crore in Q1FY23.
 

Analysts at Morgan Stanley remain 'overweight' on the counter, with a target price of Rs 1,028 per share.
 

"The core business is well placed, and the company is well positioned to capture growth in new segments like defence, electric vehicles, and aerospace. Subsidiary losses, too, were trimmed on a sequential basis due to a turnaround in international subsidiaries," the brokerage firm added in a result review note.