Shares of Bharat Forge soared over 5 percent in morning deals on April 25 after the stock got a double upgrade from Bank of America (BofA) Securities. The international brokerage now has a ‘buy’ call on the stock with a raised target price of Rs 1,450 per share, implying an 18 percent upside from the previous closing price.
Analysts at BofA Securities anticipate that the downcycle in the US truck market will be brief, shallow, and is already factored into the price. Despite this market outlook, there hasn't been any noticeable decline in production, and freight indicators have shown signs of stabilization, it said.
The brokerage has identified new avenues for growth for Bharat Forge, citing solid momentum in defense revenues, strong performance in passenger vehicle exports, and growth prospects for the defense-to-auto component supplier in industrial casting.
At 9:55 am, Bharat Forge shares were trading 5.6 percent higher at Rs 1,291.90 on the National Stock Exchange (NSE). In the last year, the stock has risen over 64 percent. In comparison, the benchmark Nifty rose around 25 percent.
The Nifty Auto index, where Bharat Forge Ltd is a constituent, has added around 70 percent in this period.
Bharat Forge is the flagship company in the $3-billion Kalyani Group. Earlier this month, the firm informed that it has appointed Amit Kalyani as the vice-chairman and joint managing director (MD) of the company for another five years, effective from May 11.
The decision was taken at the meeting of the board of directors and is subject to shareholder approval. Amit Kalyani is the son of Babasaheb Kalyani, chairman and MD of Bharat Forge.
Amit Kalyani's current tenure as joint MD ends on May 10. He has been associated with the company since 1999, starting his career focussing on operations and manufacturing before moving on to IT and finance.
In May 2004, he was appointed the company’s executive director and played a key role in the strategy and execution of several acquisitions, and diversification of business. the company said.
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