StocksMarket.in

Hold Bharat Forge; target of Rs 430: Prabhudas Lilladher

October 11
13:25 2019

Prabhudas Lilladher’s research report on Bharat Forge

We attended BHFC’s analyst meet. The management acknowledged short-term challenges in domestic CV industry as recovery in CV volumes expected only by 2HFY21 as well as weak auto exports as US and Europe heavy truck segment is expected to decline ~20% in FY21. However, customer addition in passenger car and ramp-up of new businesses would dilute the impact of weak CV segment. BHFC continues to focus on technology and intends to transform itself as component supplier to a solution provider. We believe ramp up in non-auto exports and increase in share of passenger car segment should partially negate impact of CV business slowdown.

Outlook

We maintain Hold with a target price of Rs430, based on 18x Mar-21E consolidated EPS.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.

Related Articles

Archives