Shares of Bharat Forge Ltd. fell 15% after hitting a record high on Monday as its management expects the growth momentum to moderate in both domestic and export markets across industries.
The forging company's net profit rose over threefold to Rs 254.4 crore in the quarter ended December, according to the company's exchange filing.
Bharat Forge Q3 FY24 Highlights (Consolidated, YoY)
Revenue up 15% at Rs 3,866.4 crore vs Rs 3,353.4 crore.
Ebitda up 49% at Rs 697.9 crore vs Rs 469.3 crore.
Margin expands to 18.05% vs 13.99%.
Net profit at Rs 254.4 crore vs Rs 78.7 crore.
Looking ahead in the fourth quarter and further into the next financial year, the company expects the growth momentum to moderate in both domestic and export markets across industries, Chairperson and Managing Director BN Kalyani said in an investor presentation. "Our endeavour will be to outperform the market, driven by our diversified business mix."
Bharat Forge expects a pick-up only after the elections and the reforms that follow, according to Joint Managing Director Amit Kalyani. "We mustn't always paint a rosy picture in the face of global pains," he said.
Growth in the current fiscal was driven by defence and industrial businesses, while the oil and gas business is down by two-thirds, Kalyani told NDTV Profit in an interview. "India manufacturing is set to be our biggest growth driver."
Bharat Forge's stock fell as much as 15% during the day to Rs 1,116.95 apiece on the NSE, the lowest since Nov. 30, 2023. It later closed 13.93% lower at Rs 1,130.95 apiece, as compared with a 0.78% decline in the benchmark Nifty 50.
Earlier in the day, the stock jumped 15.95% to an all-time high of Rs 1,330 apiece. The share price has risen 31.01% in the last 12 months. The total traded volume so far in the day stood at 5.1 times its 30-day average. The relative strength index was at 39.11.
Out of 29 analysts tracking the company, 18 have a 'buy' rating on the stock, three recommend 'hold' and eight suggest 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 2.8%.
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