Buy Bharat Forge, target price Rs 920: Emkay Global

Emkay Global has buy call on Bharat Forge with a target price of Rs 920. The current market price of Bharat Forge Ltd. is Rs 740.7. Time period given by analyst is one year when Bharat Forge price can reach defined target.

Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 34500.12 Crore) operating in Auto Ancillaries sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 2148.39 Crore, up .62 % from last quarter Total Income of Rs 2135.23 Crore and up 79.15 % from last year same quarter Total Income of Rs 1199.24 Crore. Company reported net profit after tax of Rs 161.86 Crore in latest quarter.


Investment Rationale
The positive view on BHC is underpinned by its leadership position in automotive forgings, focus on diversification and an expected recovery in the core segments. The brokerage has a Buy rating on the stock with a TP of Rs920, based on 27x P/E for the standalone business on Sep’23E EPS.

Promoter/FII Holdings
Promoters held 44.8 per cent stake in the company as of June 30, 2021, while FIIs held 25.3 per cent, DIIs 12.1 per cent and public and others 17.8 per cent.