Bharat Forge share price added 5 percent in early trade on June 7 after the company reported a profit in the quarter ended March 2021. The counter also touched a 52-week high of Rs 790.30 today.
The company had reported a net profit of Rs 205.4 crore in Q4 FY21 (Jan-Dec quarter) against a loss of Rs 73.3 crore in a year-ago period.
The company's revenue was up 48.4 percent at Rs 1,307 crore versus Rs 881.2 crore in Q4 FY20.
Earnings before interest, tax, depreciation and amortization (EBITDA) were up at Rs 359 crore versus Rs 110.3 crore, and the margin was at 27.5 percent against 12.5 percent in the year-ago quarter.
Here is what brokerages have to say about the stock and the company after the March quarter earnings:
CLSA | Rating: Buy | Target: Raised to Rs 900 from Rs 770
The underlying revenue recovery should continue in H2 & FY23. The global subsidiaries continued to turn around as they are reporting positive Profit Before Tax after two years.
Nomura | Rating: Upgrade to Buy from Neutral | Target: Raised to Rs 924
There are more medium-term upsides beyond FY23-34. The Sanghvi Forging acquisition will develop infra & renewable business for import substitution. With higher oil prices, oil & gas revenues could be higher.
Nomura raised the FY23 revenue forecast by 10% to Rs 7,300 crore, factoring in the margin at 26%/28.6%/30.6% over FY22/23/24.
Jefferies | Rating: Buy | Target: Rs 925
Broking house sees a big turnaround over FY22-23. The rebound in US/India trucks & industrial exports will lead the turnaround. It raised FY22-23 EPS estimates by 27-32%.
Morgan Stanley | Rating: Underweight | Target: Rs 571
The faster-than-expected cyclical recovery led to impressive Q4. The broking firm expects a strong CV & non-auto rebound.
The global CV QoQ run-rate is close to the previous peak & multiples, while risk-reward is unattractive at the current levels.
Prabhudas Lilladher | Rating: Hold | Target: Rs 701
Outlook for auto segment remained strong, benefitted by visible growth in Class 8 truck demand in FY22 along with ramp-up in domestic CV/sPVs. This coupled with a healthy outlook for industrial (with improvement in global Oil & Gas), has placed BHFC better than previous cycles. However, the same is well captured in recent valuations expansions at 36.2x/27.8x FY22/23 consolidated EPS
Motilal Oswal | Rating: Buy | Target: Rs 850
All businesses are witnessing a sharp cyclical recovery. This, coupled with its focus on creating new revenue pools in defense and e-Mobility, can further lead to de-risking of the business.
We estimate consolidated revenue/EBITDA/PAT to grow at a 31%/68%/302% CAGR (FY21-23E). The stock trades at 40.4x/24.6x FY22E/FY23E consolidated EPS.
ICICI Direct | Rating: Upgraded from Hold to Buy | Target: Rs 875
With an improved demand outlook in all the user segments along with a revived focus on accelerating growth and utilising surplus cash on the balance sheet, we turn positive on the stock.
At 09:18 hrs, Bharat Forge was quoting at Rs 763.20, up Rs 12.10, or 1.61 percent on the BSE.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.