Will Bharat Forge sustain premium valuation?

ET Intelligence Group: Despite the first ever quarterly net loss in the last decade, Bharat Forge has been trading on bourses at peak valuation following an early recovery in the major vertical of heavy trucks demand in the US and a boost to the defence segment given the government’s thrust on domestic manufacturing. The company’s enterprise value (EV) is 23 times the FY22 projected operating profit before depreciation (EBITDA), a 40% premium to