Bharat Forge share: Experts see 30% upside in defense stock. Do you own?
Premium- Bharat Forge share price may hit ₹700 and ₹725 in short term, believe stock market experts
Bharat Forge share: In the wake of Russia-Ukraine war, defense expenditure across globe is expected to shot up and hence it can be a good idea to look at quality defense stocks available at attractive valuations. According to stock market experts, Bharat Forge is one such defense stock that one can look forward to add in one's portfolio. They said that Bharat Forge in railways, construction and mining space too where Government of India's (GoI's) focus on infrastructure is expected to trickle benefit in long-term.
Advising 'buy on dips' strategy to positional investors; Sumeet Bagadia, Executive Director at Choice broking said, "Bharat Forge looks positive on chart. However, the stock has surged slightly higher today and hence one should wait for some profit booking and buy on dips maintaining stop loss at ₹645. Bharat Forge share price may hit ₹700 and ₹725 in short term."
Suggesting positional investors to add this defense stock for long term; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "After Russia-Ukraine crisis, a new global order is expected and defense expenditure across globe is expected to shot up. So, companies like Bharat Forge are expected to get benefit of this new churning in global order. Apart from this, the company has presence in railways, construction, energy and mining space too. As the GoI has announced focus on infrastructure sector in its Budget 2022, this company is expected to reap benefit of this government focus as well. However, it would take time for these developments to impact the balance sheet of the company. So, one should add this stock keeping medium to long term time horizon."
As per Motilal Oswal report, Bharat Forge share price may go up to ₹860 apiece levels, yielding around 25 to 30 per cent return to its shareholders in next one year.
"Cyclical recoveries across key businesses and contributions from the new businesses are expected to propel a sharp recovery for Bharat Forge (BHFC) over the next 2-3 years. This along with a ramp-up in the overseas aluminum forging business is likely to result in a consolidated EPS CAGR of 24% over FY22-25E," Motilal Oswal report said.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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