Buy Bharat Forge, target price Rs 742: Motilal Oswal

Motilal Oswal has buy call on Bharat Forge Ltd. with a target price of Rs 742. The current market price of Bharat Forge Ltd. is Rs 621.55.

Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 28843.22 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 1761.11 Crore, up 24.94 % from last quarter Total Income of Rs 1409.57 Crore and down -5.72 % from last year same quarter Total Income of Rs 1868.05 Crore. Company reported net profit after tax of Rs -206.71 Crore in latest quarter.


Investment Rationale
A cyclical recovery is visible in CVs and PVs. Contribution from new businesses would drive a sharp recovery in BHFC over the next 2-3 years.

Promoter/FII Holdings
Promoters held 45.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 23.5 per cent, DIIs 12.6 per cent and public and others 18.2 per cent.