Mumbai: CLSA has maintained buy rating on Bharat Forge with a target price of Rs 905. The brokerage said that outlook for Bharat Forge’s exports, which form 50 per cent of its standalone revenues, has improved significantly led by a strong cyclical recovery in key businesses.

"North American trucks continue to see a robust recovery with Nov (November) orders up 68 per cent YoY. Demand is also picking up in key industrial export segments like oil & gas, and mining & construction," the brokerage said.

CLSA has forecasted a 34 per cent EPS Compounded Annual Growth Rate for Bharat Forge in the FY17-FY20 period driven by strong growth across businesses.

"Consensus earnings saw large cuts in 2016, were flattish in 1H17 and have now started to see upgrades. Valuations at 30x 1Y (year) fwd (forward) PE seem rich but should sustain given the strong growth outlook, large headroom to grow new businesses and an improving ability to manage downturns," said CLSA.