Bharat Forge Ltd logo

Bharat Forge Ltd

BHARATFORG NSE

Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.(Source : 201903 Annual Report Page No: 123)

AI Verdict: HOLD Confidence: 5%

Bharat Forge has delivered strong profit growth of 39.8% CAGR over 5 years and is diversifying into defence and EV components, but at a PE of 88.6x and PB of 10.07x, the stock prices in significant future growth. With ROE of only 12-13% and a divided analyst consensus (43% buy vs 35% sell), the risk-reward is not compelling at current levels.

Key Fundamentals

MidcapAuto ComponentsAutomobiles
Market Cap
1.0L Cr
Volatility
Moderate
P/E Ratio
95.01
EBITDA
₹2,763 Cr
Return on Equity
12.7%
Debt to Equity
0.89
Book Value
₹200.38
EPS
₹22.02
52W High
₹2,167.5
52W Low
₹1,100.5

Technical Indicators

Key Insights

Strengths

2
  • Company has delivered good profit growth of 39.8% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 41.6%

Weaknesses

3
  • Stock is trading at 10.6 times its book value
  • Company has a low return on equity of 12.4% over last 3 years.
  • Company might be capitalizing the interest cost

Growth Rate

Revenue Growth
9.62% ↗
Net Income Growth
21.16% ↗
Cash Flow Change
7.93% ↗
ROE
-22.05% ↘
ROCE
-14.19% ↘
EBITDA Margin (Avg.)
-14.35% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 3d ago
HOLD
Risk high

Bharat Forge has delivered strong profit growth of 39.8% CAGR over 5 years and is diversifying into defence and EV components, but at a PE of 88.6x and PB of 10.07x, the stock prices in significant future growth. With ROE of only 12-13% and a divided analyst consensus (43% buy vs 35% sell), the risk-reward is not compelling at current levels.

Bull Case 7
  • Exceptional profit growth of 39.8% CAGR over the last 5 years demonstrates strong operational leverage and margin expansion
  • Stock CAGR of 60% over 1 year reflects strong momentum and institutional interest at a market cap of Rs 97,411 Cr
  • TTM profit growth of 24% indicates continued earnings acceleration even on a higher base
  • Healthy dividend payout ratio of 41.6% signals management confidence in sustained cash flows despite capex needs
  • Compounded sales growth of 22% over 5 years shows successful diversification beyond traditional auto forging into defence, aerospace, and industrial segments
  • 3-year stock CAGR of 36% significantly outperforms broader market indices, indicating re-rating driven by structural business transformation
  • 43.48% of analysts (10 out of 23) maintain a buy rating, suggesting the bull thesis still has institutional backing
Bear Case 8
  • PE ratio of 88.6x is extremely elevated even for a capital goods play, leaving no margin of safety if growth disappoints
  • Price-to-book of 10.07x is excessively rich for a company generating only 12-13% ROE — capital is not being deployed efficiently enough to justify this premium
  • 3-year ROE of just 12% is below the cost of equity for most institutional investors, indicating inadequate shareholder value creation
  • 34.78% of analysts (8 out of 23) have a sell rating, an unusually high proportion that signals significant downside risk at current valuations
  • Compounded sales growth of only 9% over 3 years and 11% TTM is modest relative to the 88.6x PE multiple the market is paying
  • Potential capitalisation of interest costs raises concerns about true profitability and reported earnings quality
  • Dividend yield of just 0.42% provides negligible downside cushion for investors if the stock de-rates from current multiples
  • 10-year compounded profit growth of only 6% reveals that the recent 5-year profit surge of 40% is a cyclical recovery rather than a secular trend

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 14h ago
Headwinds 1
  • Q4 PAT drops 17.4% Jun 04

    Consolidated profit after tax declined 17.40% to ₹233.44 crore in Q4 FY26 vs ₹282.62 crore in Q4 FY25, despite revenue growth.

Positives 8
  • ₹425 Cr MoD naval contract Jun 19

    Bharat Forge signed a ₹425 Crore contract with Ministry of Defence to supply Gas Turbine Generators to the Indian Navy, to be executed over 5 years.

  • MArG artillery series launched Jun 15

    KSSL unveiled the MArG 155mm artillery gun series (3 variants) at Eurosatory 2026; shares surged 4.19% to ₹2,026.60 on the news.

  • Simha 4x4 armoured vehicle unveiled Jun 16

    KSSL launched the Simha 4x4 modular armoured vehicle at Eurosatory 2026 in partnership with Paramount, targeting India, Africa and South Asia markets.

  • KSSL partners AM General globally Jun 18

    Kalyani Strategic Systems signed a strategic partnership with AM General for mounted artillery gun systems, targeting the U.S. Army MTC program with 2027 delivery.

  • Defence order book ₹10,961 Cr Jun 04

    Bharat Forge secured new orders worth ₹4,814 crore in FY26 including ₹2,816 crore from defence; defence order book stands at ₹10,961 crore.

  • 25% FY27 revenue growth guidance Jun 04

    CMD Baba Kalyani expressed optimism of achieving 25% revenue growth in FY27 with commensurate EBITDA and profitability increases for Indian operations.

  • ₹6.50 per share final dividend Jun 04

    Board recommended final dividend of ₹6.50/share (325% on ₹2 face value) for FY26; record date July 3, payment after August 14, 2026.

  • Stock up 33% YTD in 2026 Jun 16

    Bharat Forge shares gained over 33% YTD and 52% over 12 months, trading near 52-week highs with market cap of ~₹96,550 crore.

Neutral 5
  • 90% stake in RS Aerostructures Jun 24

    BF Industrial Solutions completed acquisition of 90% stake in RS Aerostructures (36 lakh shares at ₹10 par), making it a step-down subsidiary.

  • Semiconductor initiatives reported Jun 10

    Bharat Forge is working on semiconductor-related initiatives per CNBCTV18; no details on scope, investment or timeline disclosed.

  • Largest army carbine order won Jun 10

    Bharat Forge announced its largest army carbine order with 40% of defence revenue from exports; strong demand from India, US and Europe.

  • ₹20.32 Cr block trade on NSE Jun 10

    Block trade of ~1.07 lakh shares executed at ₹1,897/share on NSE, aggregating ₹20.32 crore, indicating institutional activity.

  • Analyst and investor meetings scheduled May 26

    Bharat Forge scheduled meetings with analysts and institutional investors in Mumbai and Chennai for June 3, 5, and 8, 2026.

TL;DR: Bharat Forge is firing on all cylinders in defence with a ₹10,961 Cr order book, multiple product launches at Eurosatory 2026, and a new ₹425 Cr naval contract. Revenue grew 17.5% in Q4 FY26 though PAT fell 17.4% due to margin pressures. The stock is up 33% YTD reflecting strong sentiment around defence and aerospace diversification. Key risk is profitability compression, but management's 25% FY27 revenue growth guidance and robust order pipeline suggest the momentum trend is improving.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
3,629
3,877
3,774
3,866
4,164
4,106
3,689
3,476
3,853
3,909
4,032
4,343
4,528
Expenses
3,191
3,282
3,153
3,169
3,521
3,365
3,042
2,853
3,174
3,239
3,308
3,597
3,751
Operating Profit
438
595
621
698
643
741
647
623
679
670
724
746
777
OPM %
12%
15%
16%
18%
15%
18%
18%
18%
18%
17%
18%
17%
17%
Other Income
17
67
51
58
45
-99
62
38
57
50
54
-13
-46
Interest
97
114
124
137
116
124
110
96
88
82
80
77
84
Depreciation
181
206
211
224
207
218
213
218
224
226
241
249
255
PBT
177
341
337
395
366
300
385
347
424
411
457
407
392
Tax %
28%
37%
36%
36%
38%
42%
37%
39%
33%
31%
34%
33%
40%
Net Profit
128
214
215
254
227
175
243
213
283
284
299
273
233
EPS in Rs
2.91
4.8
4.88
5.68
5.07
4.36
5.23
4.45
5.9
5.93
6.26
5.53
4.86
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
7,622
6,809
6,396
8,358
10,146
8,056
6,336
10,461
12,910
15,682
15,123
16,812
Expenses
6,232
5,397
5,276
6,635
8,098
6,984
5,504
8,478
11,174
13,121
12,431
13,894
Operating Profit
1,390
1,413
1,121
1,723
2,048
1,072
832
1,983
1,737
2,562
2,692
2,917
OPM %
18%
21%
18%
21%
20%
13%
13%
19%
13%
16%
18%
17%
Other Income
226
148
391
46
199
109
-138
288
124
217
55
44
Interest
136
116
100
107
127
171
108
160
299
491
417
323
Depreciation
362
453
452
467
521
548
612
730
736
848
874
971
PBT
1,118
992
960
1,196
1,599
462
-25
1,381
827
1,439
1,456
1,667
Tax %
32%
32%
26%
37%
35%
24%
399%
22%
39%
37%
37%
35%
Net Profit
760
675
711
754
1,033
349
-127
1,077
508
910
913
1,089
EPS in Rs
16.38
14.57
15.13
16.38
22.17
7.51
-2.71
23.23
11.35
20.43
19.69
22.58
Div. Payout %
23%
26%
25%
27%
23%
47%
-74%
30%
62%
44%
43%
38%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
47
47
47
93
93
93
93
93
93
93
96
96
Reserves
3,398
3,367
4,070
4,559
5,283
5,127
5,322
6,478
6,612
7,077
9,158
9,484
Borrowings
2,546
3,375
3,124
3,257
4,029
4,469
5,271
5,972
7,313
7,948
6,698
7,309
Other Liabilities
2,245
1,504
1,600
2,068
2,173
1,793
2,402
2,950
4,216
4,066
4,017
5,372
Total Liabilities
8,236
8,292
8,841
9,977
11,578
11,482
13,088
15,492
18,235
19,184
19,968
22,260
Fixed Assets
2,629
3,134
3,277
3,500
3,625
4,002
4,750
4,870
6,161
6,309
6,627
8,262
CWIP
870
409
453
344
831
1,143
900
1,125
701
991
1,732
1,251
Investments
496
886
1,192
1,501
1,524
1,618
2,607
2,604
2,569
1,849
2,063
1,738
Other Assets
4,242
3,863
3,919
4,632
5,599
4,720
4,831
6,893
8,804
10,034
9,547
11,008
Total Assets
8,236
8,292
8,841
9,977
11,578
11,482
13,088
15,492
18,235
19,184
19,968
22,260
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
1,035
1,356
1,052
967
911
1,522
1,020
506
1,294
1,664
1,796
1,487
Investing
-467
-888
-737
-722
-1,196
-1,114
-1,511
-690
-1,666
-665
-1,964
-1,033
Financing
-360
-448
-401
-314
368
-381
578
310
280
-203
-570
-442
Net Cash Flow
208
19
-86
-69
83
26
87
126
-91
796
-738
12
Free Cash Flow
326
465
408
399
-220
565
129
-459
325
164
352
374
CFO/OP
104
118
118
79
71
164
134
43
99
85
89
70
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
41
75
77
85
77
68
81
75
87
74
70
85
Inventory Days
131
142
161
151
160
177
249
235
191
159
198
195
Days Payable
144
119
127
148
118
105
167
141
132
112
130
144
Cash Conversion Cycle
28
98
111
88
119
140
163
169
147
121
138
136
Working Capital Days
40
11
-8
6
15
-15
-49
-24
-39
-46
-27
14
ROCE %
21%
17%
13%
18%
20%
7%
3%
11%
8%
13%
12%
13%

Shareholding Pattern

As of Mar 2026
Promoters 44.07%
DIIs 32.76%
FIIs 14.15%
Public 7.23%
Others 1.78%
Total 99.99%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
45.76%
44.76%
44.76%
44.76%
45.25%
45.25%
45.25%
45.25%
45.25%
45.25%
45.25%
45.25%
45.25%
45.25%
45.25%
44.07%
44.07%
44.07%
44.07%
44.07%
44.07%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
16.28%
0.00%
16.47%
17.03%
18.72%
17.88%
16.07%
14.37%
13.62%
12.40%
14.15%
DIIs
11.98%
11.94%
13.12%
19.83%
23.38%
24.23%
23.25%
26.28%
27.89%
26.31%
28.12%
25.12%
28.24%
28.13%
26.47%
28.50%
30.35%
31.41%
32.26%
34.23%
32.76%
Government
0.28%
0.16%
0.16%
0.16%
0.16%
0.16%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
8.63%
8.29%
8.28%
8.32%
8.30%
8.21%
8.31%
8.27%
8.43%
8.09%
8.07%
8.01%
7.81%
7.48%
7.50%
7.47%
7.45%
7.78%
7.83%
7.35%
7.23%
Others
33.35%
34.84%
33.68%
26.92%
22.91%
22.15%
23.18%
20.20%
18.42%
20.35%
2.27%
21.62%
2.22%
2.10%
2.05%
2.08%
2.05%
2.37%
2.22%
1.95%
1.78%
No. of Shareholders
1,44,297
1,36,944
1,41,346
1,51,059
1,53,718
1,56,445
1,58,845
1,55,734
1,62,105
1,56,686
1,69,954
1,79,683
1,89,104
1,82,988
1,99,721
2,03,973
2,14,725
2,42,732
2,49,520
2,27,160
2,28,156

Documents

Frequently Asked Questions about Bharat Forge Ltd

What does Bharat Forge Ltd do?
Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.(Source : 201903 Annual Report Page No: 123)
Where is Bharat Forge Ltd (BHARATFORG) listed?
Bharat Forge Ltd is listed on the Indian stock exchanges. It is listed on NSE: BHARATFORG and BSE: 500493. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Bharat Forge Ltd belong to?
Bharat Forge Ltd operates in the Consumer Discretionary sector within the Auto Components industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Bharat Forge Ltd?
Bharat Forge Ltd has a market capitalisation of approximately ₹102244.03 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Bharat Forge Ltd?
The Price-to-Earnings (PE) ratio of Bharat Forge Ltd is 95.01. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Bharat Forge Ltd?
Over the past 52 weeks, Bharat Forge Ltd has traded between a low of ₹1,100.5 and a high of ₹2,167.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Bharat Forge Ltd pay dividends?
Yes, Bharat Forge Ltd has a dividend yield of 0.40%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Bharat Forge Ltd?
Bharat Forge Ltd has a Return on Equity (ROE) of 12.70%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Bharat Forge Ltd on Tapetide?
On Tapetide, you can view Bharat Forge Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.(Source : 201903 Annual Report Page No: 123)

Website bharatforge.com
CEO Dr. Babasaheb Neelkanth Kalyani M.S. (MIT)
Employees 3,972
Listed 2003-04-04
Face Value ₹ 2
Issued Size 47,80,88,632

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