Bharat Forge Stock Analysis

Bharat Forge Limited is a major Indian multinational company based in Pune, known for manufacturing high-quality forged and machined components used in various industries such as automotive, railways, aerospace, marine, defence, energy, construction, and mining. Founded in 1961, it is part of the Kalyani Group and is recognized as the world’s largest single-location forging facility with advanced automated press lines and machining capabilities. The company supplies critical parts like front axle beams, steering knuckles, connecting rods, and crankshafts to leading global customers, including Daimler and Volkswagen. Bharat Forge has also diversified into sectors like oil and gas, infrastructure, and renewable energy, continuously innovating to provide lightweight and high-performance solutions. It plays a crucial role in India's industrial growth by offering end-to-end engineering and manufacturing services with a strong focus on technology and quality.

Company Insights
The company has a market capitalization of 61,525 crores
The share price of the company is 1,287
The book value of the company is 194
The company's debt-to-equity ratio is 0.72
The company's annual dividend yield is 0.66%
The company's stock P/E is 61.11
The earnings per share are 19.7
The company's ROCE is 13.1%

Financial Report
The company's sales in the last 5 years
Sales in 2021 is 6,336 crores
Sales in 2022 is 10,461 crores
Sales in 2023 is 12,910 crores
Sales in 2024 is 15,682 crores
Sales in 2025 is 15,123 crores

The company's profit in the last 5 years
Profit in 2021 is -127 crores
Profit in 2022 is 1,077 crores
Profit in 2023 is 508 crores
Profit in 2024 is 910 crores
Profit in 2025 is 913 crores

Sales & Profit Growth
The company's sales growth in the last 5 years
Sales growth in the last 5 years is 13.4%
Sales growth in the last 3 years is 13.1%
Sales growth in the last 1 year is -3.57%

The company's profit growth in the last 5 years
Profit growth in the last 5 years is 21.9%
Profit growth in the last 3 years is 2.90%
Profit growth in the last 1 year is 14.4%

Holdings
Promoters are 44.07%
FIIs are 16.08%
DIIs are 30.20%
Government are 0.15%
Public are 9.49%

Company News

• Bharat Forge Limited announced two major strategic moves aimed at strengthening its focus on the defense and automotive sectors. The company’s board approved the transfer of its defense business assets and related obligations to its wholly owned subsidiary, Kalyani Strategic Systems Limited (KSSL), through an itemized sale valued at fair market rates. This internal restructuring is designed to streamline operations and sharpen strategic clarity in the defense segment. The transaction consideration will be settled via Optionally Convertible Redeemable Preference Shares (OCRPS) issued by KSSL, with the transfer expected to complete within 45 days. Bharat Forge will retain 100% ownership of KSSL, which reported an FY25 revenue of ₹1,247 crore and a net worth of ₹232 crore.

• Simultaneously, Bharat Forge approved the acquisition of 100% equity in AAM India Manufacturing Corporation Private Limited, a leading manufacturer of axles for commercial vehicles in India. The acquisition cost was revised upward to ₹770 crore from the earlier estimate of ₹544.5 crore, primarily due to higher cash balances in AAM India as of the closing date. This move is expected to deepen Bharat Forge’s presence in the automotive components sector and complement its existing portfolio.

• Following these announcements, Bharat Forge’s stock traded slightly lower, reflecting market adjustments to the restructuring news. The company emphasized that these steps will unlock value and support sharper growth trajectories in defense and automotive domains while maintaining full regulatory compliance.

• This strategic realignment marks a significant step for Bharat Forge as it continues to expand its footprint in key industrial sectors, leveraging its subsidiary structure for focused growth and operational efficiency.

Technical Analysis

Company Chart

Moving Averages (MA)

• The stock price is above the 50-MA, which indicates that the stock is in an uptrend.

• The stock price is just above the 200-MA, which indicates that the stock may remain in uptrend.

Relative Strength Index (RSI)

Currently, the RSI of the company is 51, which indicates that the stock is neither overbought nor oversold.

My Analysis

Bharat Forge has shown a mixed performance recently. In the March 2025 quarter, its net profit increased by nearly 20% year-on-year to ₹282 crore, and EBITDA improved, signaling stronger profitability. However, net sales dropped by about 7.5%, mainly due to weak demand in Europe and fluctuations in its defense segment. The company’s operating profit-to-interest ratio reached a five-quarter high, reflecting solid financial management. While increased non-operating income boosted profits, its sustainability remains uncertain. Going forward, Bharat Forge expects steady performance, with growth in new business areas helping to balance challenges in the global automotive market.