Investors should wait as muted outlook to cap upside in Bharat Forge

Despite the near-term weakness, the Street is expecting some revival in the segment on the back of a pick up in infrastructure activity

Investor expectations in Bharat Forge, which had a strong FY19, have to be tempered, given the cautious near-term outlook for the company. The management outlined demand worries in the current quarter (June quarter) in the domestic and the overseas markets for auto and industrial segments. While there is a slowdown in the commercial vehicle segment in India and moderation in Class 8 truck orders in the US market, there are headwinds for car sales globally. Global economic uncertainty, volatile crude oil prices and issues related to shale transportation are expected to impact production. 

Lower volumes for the commercial vehicle sector in