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BHARATFORG - Fundamental Analysis: Financial Health & Valuation
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.6
| Stock Code | BHARATFORG | Market Cap | 68,830 Cr. | Current Price | 1,440 ₹ | High / Low | 1,461 ₹ |
| Stock P/E | 50.6 | Book Value | 231 ₹ | Dividend Yield | 0.60 % | ROCE | 14.6 % |
| ROE | 13.7 % | Face Value | 2.00 ₹ | DMA 50 | 1,358 ₹ | DMA 200 | 1,278 ₹ |
| Chg in FII Hold | -0.75 % | Chg in DII Hold | 0.85 % | PAT Qtr | 316 Cr. | PAT Prev Qtr | 339 Cr. |
| RSI | 54.6 | MACD | 13.8 | Volume | 4,50,035 | Avg Vol 1Wk | 4,32,092 |
| Low price | 919 ₹ | High price | 1,461 ₹ | PEG Ratio | 4.38 | Debt to equity | 0.33 |
| 52w Index | 96.1 % | Qtr Profit Var | -10.3 % | EPS | 28.0 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Quarterly PAT declined from 339 Cr. to 316 Cr. (-10.3%).
- ROE at 13.7% and ROCE at 14.6% show moderate efficiency.
- Debt-to-equity ratio of 0.33 indicates manageable leverage.
- Dividend yield at 0.60% reflects consistent shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 50.6 vs Industry PE of 30.0 → Overvalued.
- P/B Ratio: Current Price / Book Value ≈ 6.23 → Expensive relative to assets.
- PEG Ratio: 4.38 → Weak earnings growth compared to valuation.
- Intrinsic Value Zone: ₹1150–₹1250 (near DMA 200).
🏭 Business Model & Competitive Advantage
- Diversified presence in auto components, defense, and industrial manufacturing.
- Strong global footprint with significant export contribution.
- Technological expertise in forging and engineering solutions provides competitive edge.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation between ₹1150–₹1250.
- Long-Term Holding: Suitable for investors seeking exposure to manufacturing & defense growth, but valuation risks remain.
✅ Positive
- Strong global presence and diversified business model.
- Healthy ROE and ROCE above 13%.
- Low debt-to-equity ratio (0.33).
⚠️ Limitation
- High P/E and P/B ratios indicate overvaluation.
- PEG ratio suggests weak earnings growth relative to price.
- Quarterly profit decline (-10.3%).
📉 Company Negative News
- Recent quarterly profit contraction.
- Decline in FII holdings (-0.75%).
📈 Company Positive News
- Increase in DII holdings (+0.85%).
- Stock trading near 52-week high (96.1% of range).
🌐 Industry
- Auto ancillary sector facing cyclical demand pressures.
- Defense and industrial manufacturing expected to grow with government initiatives.
- Industry PE at 30.0 indicates sector is moderately valued compared to Bharat Forge’s premium.
🔎 Conclusion
- Bharat Forge is financially stable with strong fundamentals but currently overvalued.
- Best suited for long-term investors willing to wait for better entry levels.
- Accumulation recommended near ₹1150–₹1250 for favorable risk-reward.
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