06-Nov-2026 08:05:28
CITI on Bharat Forge ; Sell, TP Rs 1270
2Q above estimates with encouraging beat in autos segment for both domestic and exports markets. Mgmt outlook is positive, with healthy growth expected in 2HFY27 across segments. Mgmt reiterated its guidance of 20-25%YoY revenue growth in Indian manufacturing operations in FY27. In a positive development, ATAG (gun) order has received Bulk Production Clearance (BPC), with revenue recognition expected from 1QFY28 Acknowledge revenue & profit growth in standalone business, & increase estimates slightly over FY28-29, boosted by the ATAG order (FY27 broadly unchanged) However, overseas subs continue to disappoint with net losses expanding QoQ, & prevent us from being more constructive Valuations provide little room for error.
BHARAT FORGE LTD