Profit

BSE Code: | NSE Code: | ISIN: | Sector:

NSE
589.05
Change Change %
-0.75 -0.13%

Updated:16 Nov, 2018, 14:24 PM IST

BSE
590.00
Change Change %
0.65 0.11%

Updated:16 Nov, 2018, 14:52 PM IST

Research Report Detail

Brokerage
Analyst
Report Date Call Price@Call Target Price
Stop Loss
Current Status Time Horizon
Nomura
N/A
07-07-2017 Sell 1120.00 854.00
N/A
Target Hit Long (1Y)
07-07-2018

Nomura maintains reduce on Bharat Forge

Nomura has maintained 'reduce' on Bharat Forge for target price of Rs 854. It says in the domestic M&HCV segment (16% of Bharat Forge's FY18F standalone revenues), we see structural headwinds to growth due to sharp (8-10%) increases in prices from 1 April 2017 on higher emission norms, pre-buying in March 2017, demand uncertainty and efficiency gains post GST implementation from July 2017. Thus, we have factored in a 5% decline in industry volumes in FY18F. New upcoming segments such as railways and aerospace are too small (1-2% of sales) to offset these in FY18F. The stock is currently trading at 34x/26x FY18F/19F EPS, after factoring in the 32% EPS CAGR over FY17-19F, which we believe is expensive. Maintain Reduce rating and TP of Rs 854.

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