BHARATFORG - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | BHARATFORG | Market Cap | 89,957 Cr. | Current Price | 1,882 ₹ | High / Low | 1,950 ₹ |
| Stock P/E | 67.3 | Book Value | 231 ₹ | Dividend Yield | 0.45 % | ROCE | 14.6 % |
| ROE | 13.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,765 ₹ | DMA 200 | 1,523 ₹ |
| Chg in FII Hold | 1.75 % | Chg in DII Hold | -1.46 % | PAT Qtr | 322 Cr. | PAT Prev Qtr | 316 Cr. |
| RSI | 58.7 | MACD | 42.8 | Volume | 21,05,457 | Avg Vol 1Wk | 13,54,718 |
| Low price | 1,080 ₹ | High price | 1,950 ₹ | PEG Ratio | 5.83 | Debt to equity | 0.33 |
| 52w Index | 92.2 % | Qtr Profit Var | -7.03 % | EPS | 26.8 ₹ | Industry PE | 27.3 |
📊 Bharat Forge (BHARATFORG) maintains a solid business model in auto components and defense manufacturing, supported by global exports. Financially, ROCE at 14.6% and ROE at 13.7% indicate moderate efficiency, while debt-to-equity at 0.33 remains manageable. PAT growth is flat (322 Cr. vs 316 Cr.), with quarterly profit variation at -7.03%, showing earnings pressure. Valuations are stretched with a P/E of 67.3 compared to industry average of 27.3, and a PEG ratio of 5.83 suggests expensive growth. EPS of 26.8 ₹ reflects profitability, but intrinsic value indicates limited margin of safety at current levels.
💡 Entry Zone: 1,770–1,820 ₹ (near 50 DMA support).
📈 Long-Term Holding Guidance: Suitable for swing and long-term investors, but accumulation should be cautious given stretched valuations. Hold for 12–18 months with profit booking near 1,930–1,950 ₹ if momentum sustains.
✅ Positive
- Strong global presence in auto and defense sectors.
- Healthy EPS (26.8 ₹) supports profitability.
- FII holdings increased (+1.75%), showing foreign investor confidence.
- Stock trading above 200 DMA (1,523 ₹), indicating long-term strength.
⚠️ Limitation
- High P/E (67.3) vs industry average (27.3).
- PEG ratio of 5.83 suggests expensive growth.
- Quarterly profit variation (-7.03%) reflects earnings pressure.
- Dividend yield of 0.45% is modest.
📉 Company Negative News
- DII holdings declined (-1.46%), showing reduced domestic institutional support.
- Flat PAT growth indicates limited near-term earnings momentum.
📈 Company Positive News
- FII holdings increased (+1.75%), reflecting foreign investor confidence.
- Strong trading volumes above weekly average indicate investor interest.
🏭 Industry
- Auto and defense manufacturing sectors remain resilient with global demand.
- Industry P/E at 27.3 highlights moderate valuations compared to Bharat Forge’s premium.
🔎 Conclusion
⚖️ Bharat Forge is a fundamentally stable company with global exposure and moderate efficiency metrics. However, stretched valuations and earnings pressure limit near-term upside. Entry near 1,770–1,820 ₹ offers a favorable risk-reward setup. Suitable for swing trades and cautious long-term accumulation, with profit booking advised near 1,930–1,950 ₹ if momentum sustains.