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Bharat Forge hits 52-week low; stock falls 9%

The stock slipped 9.5% to Rs 526, its lowest level since May 24, 2017.

SI Reporter  |  Mumbai 

Bharat forge

Shares of slipped 9.5% to Rs 526 to hit their 52-week low on the BSE on heavy volumes given the concerns of near-term demand challenges persisting for domestic commercial vehicles (CV). The stock of a leading ancillary metal forging company was trading at its lowest level since May 24, 2017 in late morning deals.

Sales of medium and heavy commercial vehicles (MHCV) for most of the manufacturers fell sharply in November after advancing at a brisk pace for over a year, reflecting a sluggishness in the overall economy.

Combined sales at top four manufacturers — Tata Motors, Ashok Leyland, Volvo Eicher Commercial Vehicles, and — dropped 20% to 20,324 units in November, compared with the same period a year ago, shows monthly sales data released by companies.

The drop in sales has come on the back of higher cost of borrowing, lesser load and reduced freights, which in turn have impacted transporter’s viability. firms count dispatches to dealers as sales, the Business Standard reported. CLICK HERE TO READ FULL REPORT

“Despite the near-term volatility arising from higher diesel price, availability and cost of finance and recent revision in axle norms, the management expects growth momentum to sustain till FY20 (pre-buy before BS6 norms),” analysts at JM Financial said in a company update.

has recently received the first export order for its lightweighting business, which is likely to be a key growth trigger in the medium term. The company’s oil & gas segment is at its all-time high, as demand for FRAC pump will continue to increase until Brent is below 50 USD/barrel. However, with the implementation of WLTP (Worldwide Harmonised Light Vehicle Test Procedure) in EU starting 01 Sep’18, OE sales have been lower, impacting the forging volumes done at European subsidiaries (likely to continue till 4QCY18), the brokerage firm said in a note.

At 10:47 am, was trading 9% lower at Rs 531 on BSE, as compared to a 0.58% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than seven-fold with a combined 5.15 million equity shares changed hands on the BSE and NSE so far.


First Published: Wed, December 05 2018. 10:51 IST
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