Bharat Forge - Defense To Remain Growth Driver: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We met Bharat Forge Ltd.’s management team recently to understand the company’s growth outlook in the coming years. Key growth drivers for Bharat Forge would be:the robust order backlog of Rs 54 billion in defense exports to be executable over the next three years, along with the prospects of the beginning of domestic defense orders soon; with new order wins and multiple initiatives, JS Autocast is likely to emerge as one of the fastest growing businesses of Bharat Forge; the aerospace segment is set to clock strong growth in the coming years; Passenger vehicle exports are likely to moderate in FY25E, but they should pick up from FY26 onward given a healthy order backlog. However, commercial vehicles (both domestic and exports) and domestic PVs are likely to see weak growth. .Given the weakness in Europe, the turnaround in overseas subsidiaries may happen with a lag of a couple of quarters. We estimate a CAGR of 13%/26%/54% in consolidated revenue/Ebitda/PAT over FY24-26. However, at 45.5 times/34 times FY25E/FY26E PER, we believe the current valuation fully prices in the positive factors. We remain Neutral with a revised target price of Rs 1,470 (based on 30 times Sep’26E consolidated EPS)..Click on the attachment to read the full report:.Vodafone Idea Plans On Track Despite Set-Back On AGR Curative Petition: ICICI Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bharat Forge - Defense To Remain Growth Driver: Motilal Oswal

The brokerage believes the company's current valuation fully prices in the positive factors hence remains Neutral with a revised target price of Rs 1,540.

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Bharat Forge - Defense To Remain Growth Driver: Motilal Oswal

The brokerage believes the company's current valuation fully prices in the positive factors hence remains Neutral with a revised target price of Rs 1,540.

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