BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Nomura maintains neutral on Bharat Forge
BHFC continues to
benefit from strong growth in the domestic segment led by market share
gains and addition of new components in CVs, strong growth in non-auto
led by order wins in defence and heavy machinery. Also, export non-auto
would benefit from improving oil and gas outlook in North America.
However, the stock is currently trading at around 29.5x/24.4x FY18F/19F
EPS, after factoring in the 21% EPS CAGR over FY17-20F, which we believe
is expensive. We maintain our Neutral rating and P/E-based TP of
INR1,248, which implies around 10% potential upside.