Buy Bharat Forge, target price Rs 965: Motilal Oswal

Motilal Oswal has buy call on Bharat Forge with a target price of Rs 965. The current market price of Bharat Forge Ltd. is Rs 824. Time period given by analyst is one year when Bharat Forge Ltd. price can reach defined target.

Bharat Forge Ltd., incorporated in the year 1961, is a Large Cap company (having a market cap of Rs 38285.35 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 brokerage raises FY22E consolidated EPS by 16% to account for strong demand in the export markets, while maintaining estimates for FY23E. It maintains Buy rating, with TP of INR965/share (28x 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 12.3 per cent and public and others 17.7 per cent.