Buy Bharat Forge with a target at Rs 925: Systematix Shares
Bharat Forge (BHFC) reported 4QFY16 results in line but below market expectations. Revenue declined 19 per cent YoY mainly on account of the current slowdown in NA Class 8 orders and a slowdown in industrial segments such as oil & gas
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| Updated: Systematix Shares & Stocks maintains a buy rating on Bharat Forge post March quarter results with a 12-month target price of Rs 925.
Bharat Forge (BHFC) reported 4QFY16 results in line but below market expectations. Revenue declined 19 per cent YoY mainly on account of the current slowdown in NA Class 8 orders and a slowdown in industrial segments such as oil & gas.
"We believe the revenue headwinds (FY17) are likely to evaporate in 2HFY17 if we aggregate the increment output from new business (future drivers)," said the brokerage note.
"We have maintained the Buy rating with a lower target price of Rs925 (Rs960 earlier) on account of 3%/4% earnings downgrade for FY17/18," it said.
Bharat Forge (BHFC) reported 4QFY16 results in line but below market expectations. Revenue declined 19 per cent YoY mainly on account of the current slowdown in NA Class 8 orders and a slowdown in industrial segments such as oil & gas.
"We believe the revenue headwinds (FY17) are likely to evaporate in 2HFY17 if we aggregate the increment output from new business (future drivers)," said the brokerage note.
"We have maintained the Buy rating with a lower target price of Rs925 (Rs960 earlier) on account of 3%/4% earnings downgrade for FY17/18," it said.
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