⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BHARATFORG - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | BHARATFORG | Market Cap | 86,289 Cr. | Current Price | 1,804 ₹ | High / Low | 1,936 ₹ |
| Stock P/E | 64.6 | Book Value | 231 ₹ | Dividend Yield | 0.47 % | ROCE | 14.6 % |
| ROE | 13.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,675 ₹ | DMA 200 | 1,440 ₹ |
| Chg in FII Hold | -1.22 % | Chg in DII Hold | 1.97 % | PAT Qtr | 322 Cr. | PAT Prev Qtr | 316 Cr. |
| RSI | 55.2 | MACD | 29.2 | Volume | 22,08,384 | Avg Vol 1Wk | 14,31,841 |
| Low price | 919 ₹ | High price | 1,936 ₹ | PEG Ratio | 5.59 | Debt to equity | 0.33 |
| 52w Index | 87.0 % | Qtr Profit Var | -7.03 % | EPS | 26.8 ₹ | Industry PE | 25.0 |
📊 Financials
- Revenue Growth: Stable, but quarterly PAT only marginally improved (322 Cr. vs 316 Cr.)
- Profit Margins: Moderate, quarterly profit variation at -7.03%
- Debt Ratios: Debt-to-Equity 0.33, manageable but higher than peers
- Cash Flows: Reasonable, supported by diversified operations
- Return Metrics: ROE 13.7%, ROCE 14.6% — moderate efficiency
💹 Valuation
- P/E Ratio: 64.6 (well above Industry PE 25.0, indicates premium valuation)
- P/B Ratio: ~7.8 (high, reflects market optimism)
- PEG Ratio: 5.59 (suggests overvaluation relative to growth)
- Intrinsic Value: Current price (1,804 ₹) above DMA 50 (1,675 ₹) & DMA 200 (1,440 ₹), showing bullish momentum
🏢 Business Model & Competitive Advantage
- Global leader in forging and automotive components
- Diversified presence in defense, aerospace, and industrial sectors
- Strong export base and technological expertise
- Competitive advantage in engineering capabilities and product diversification
📈 Entry Zone Recommendation
- Entry Zone: 1,650–1,750 ₹ (near DMA 50 support)
- Long-Term Holding: Suitable for investors seeking exposure to auto and defense cycles, but valuations are stretched
✅ Positive
- Diversified business across auto, defense, and aerospace
- Strong market cap and global presence
- DII holding increased (+1.97%)
- Technical momentum above DMA 200
⚠️ Limitation
- High P/E and PEG ratios
- ROE and ROCE relatively modest compared to valuation
- Debt-to-Equity at 0.33, higher than debt-free peers
📉 Company Negative News
- FII holding decreased (-1.22%)
- Quarterly profit variation negative (-7.03%)
📈 Company Positive News
- DII holding increased (+1.97%)
- Strong technical momentum with MACD positive (29.2)
- Stock trading near highs, supported by bullish sentiment
🏭 Industry
- Automotive and defense sectors showing cyclical growth
- Industry PE at 25.0, Bharat Forge trades at a significant premium
🔎 Conclusion
Bharat Forge is a diversified engineering powerhouse with strong global presence and exposure to auto and defense cycles. While fundamentals are stable, valuations are stretched with a P/E of 64.6 and PEG of 5.59. Entry around 1,650–1,750 ₹ offers better risk-reward. Long-term investors can hold for sectoral growth, but should be cautious of premium valuations and moderate return ratios.