Bharat Forge Surges 4% On North America Truck Orders

Bharat Forge shares surged over 4 per cent on Wednesday after the auto component maker's orders for North America Class 8 trucks increased nearly 35 per cent month-on-month to 14,000 units in August. 

Analysts say this was better than the Street's estimates. 

The Pune-based company had received orders for 10,400 units in July. 

North America trucks contribute nearly 30 per cent to Bharat Forge's annual revenues, say analysts. 

Although North America Class 8 truck orders increased on a month-on-month basis, it was down 35 per cent compared to August 2015. 

Bharat Forge's order inflows for North America Class 8 trucks have declined for the 17th straight months on an annual basis, analysts say. 

Bharat Forge's shares have rallied since the company announced its June quarter earnings on August 5, 2016. Though the earnings were below the Street's estimates, positive management commentary helped spur a rally in the shares. 

The company's management anticipated demand in Q2 to be better than Q1 on the back of positive domestic demand in automotive and industrial segment. 

Bharat Forge shares closed 1.88 per cent higher at Rs 888 compared to 0.28 per cent fall in Nifty.