Bharat Forge Ltd (BHARATFORG) AI Stock Analysis

• Market Cap: ₹689.62B
• Dividend Yield: 0.58%
• Average Volume (3M): 81.62K
• Price to Earnings (P/E): 63.7
• Beta (1Y): 1.34
• Revenue Growth: -3.52%
• EPS Growth: 11.27%
• Country: IN
• Employees: 3,778
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 6.30
• Shares Outstanding: 478,088,620
• 10 Day Avg. Volume: 23,447
• 30 Day Avg. Volume: 81,623
• PEG Ratio: -30.80
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 3.57
• P/FCF Ratio: 155.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,255.00
• Price Target Upside: -13.00% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: ₹1,535.00 ▲(6.42% Upside)

Bharat Forge Ltd's overall stock score reflects strong technical momentum and solid financial performance, but is tempered by high valuation concerns. The stock's bullish trend is a key strength, though the high P/E ratio suggests caution. Rising debt levels and liquidity risks are potential challenges.

Positive Factors

Revenue Diversification

Bharat Forge's diversified revenue streams across multiple industries reduce dependency on any single sector, enhancing resilience against market fluctuations.

R&D and Innovation

Strong R&D and innovation capabilities enable Bharat Forge to maintain a competitive edge by continuously enhancing product offerings and entering new markets.

Profitability Margins

Robust profitability margins suggest efficient cost management and pricing power, contributing to sustained financial health and shareholder value.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial flexibility, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns.

High Capital Expenditures

Significant capital expenditures could pressure cash flow, limiting the company's ability to respond to market changes and invest in strategic initiatives.

Revenue Growth Decline

A decline in revenue growth may signal challenges in market demand or competitive pressures, potentially affecting long-term business sustainability.

Bharat Forge Ltd Business Overview & Revenue Model

Company Description

Bharat Forge Limited manufactures and sells forged and machined components in India and internationally. It operates in two segments, Forgings and Others. The company offers automotive components, including crankshafts, connecting rods, emission/after treatment, fuel injection systems, chassis, and transmission and driveline components; and power generation components for thermal, hydro, and wind energy. It also provides oil and gas forging products, such as subsea, surface, and drilling components; rail products comprising engine and bogie components, turbochargers, and power electronics; and marine products that include crankshafts, rubber, connecting rods, and propeller shafts. In addition, the company offers various components for the aviation sector, such as fan blades, compressors, turbines, aero structures, and landing gear components; construction and mining products, including track links, front spindles, machined crankshafts, and injector bodies; and electric power-train products, such as full powertrain solutions, systems and sub systems, and parts for powertrain. Further, it designs engineering and product development solutions. The company was incorporated in 1961 and is headquartered in Pune, India.

How the Company Makes Money

Bharat Forge generates revenue through the sale of its forged components and products across various sectors, primarily focusing on automotive and industrial applications. The company's revenue model is driven by long-term contracts and partnerships with major automotive manufacturers, allowing it to secure consistent orders. Key revenue streams include the supply of components for commercial vehicles, passenger vehicles, and industrial machinery. Additionally, Bharat Forge benefits from its diversification into aerospace and defense sectors, where it supplies specialized products. Significant partnerships with global OEMs enhance its market presence and stability, contributing to its earnings. The company also invests in advanced manufacturing technologies and R&D to expand its product offerings and improve operational efficiency, further bolstering its revenue potential.

Bharat Forge Ltd Financial Statement Overview

Summary

Bharat Forge Ltd shows solid financial performance with consistent revenue growth and robust profitability margins. The balance sheet remains stable, but rising debt levels could pose future risks. Cash flow generation is positive, yet high capital expenditures may affect liquidity.

Income Statement

Bharat Forge Ltd has demonstrated consistent revenue growth, with a notable increase in Total Revenue from FY 2022 to FY 2023. The Gross Profit Margin and Net Profit Margin are strong, indicating healthy profitability. However, EBIT and EBITDA margins suggest room for operational efficiency improvements.

Balance Sheet

The company's Debt-to-Equity Ratio is manageable, reflecting a balanced approach to leverage. Return on Equity indicates efficient use of equity, although there's a slight decline from previous years. The Equity Ratio shows a stable capital structure, but the rising Total Debt warrants attention.

Cash Flow

Operating Cash Flow is strong, and the Free Cash Flow to Net Income ratio is positive, demonstrating adequate cash generation. However, volatile Free Cash Flow growth and high capital expenditures highlight potential liquidity risks.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	149.25B	151.23B	156.82B	129.10B	104.61B	63.36B
Gross Profit	82.51B	83.08B	80.36B	67.48B	60.63B	37.02B
EBITDA	25.81B	26.46B	25.00B	17.29B	19.01B	7.71B
Net Income	10.22B	9.41B	9.51B	5.28B	10.82B	-1.26B
Balance Sheet
Total Assets	0.00	200.88B	193.49B	183.84B	156.09B	131.78B
Cash, Cash Equivalents and Short-Term Investments	20.98B	26.56B	27.02B	20.84B	25.04B	25.43B
Total Debt	0.00	66.98B	79.48B	73.13B	59.72B	52.71B
Total Liabilities	-92.21B	108.68B	121.84B	116.43B	89.82B	77.31B
Stockholders Equity	92.21B	92.53B	71.70B	67.06B	65.71B	54.15B
Cash Flow
Free Cash Flow	0.00	3.46B	1.40B	2.98B	-5.62B	1.06B
Operating Cash Flow	0.00	17.96B	16.64B	12.94B	5.06B	10.20B
Investing Cash Flow	0.00	-19.64B	-6.67B	-16.71B	-6.90B	-15.11B
Financing Cash Flow	0.00	-5.70B	-2.03B	2.80B	3.10B	5.78B

Bharat Forge Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1442.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BHARATFORG, the sentiment is Positive. The current price of 1442.45 is above the 20-day moving average (MA) of 1418.16, above the 50-day MA of 1374.33, and above the 200-day MA of 1235.61, indicating a bullish trend. The MACD of 19.61 indicates Negative momentum. The RSI at 59.64 is Neutral, neither overbought nor oversold. The STOCH value of 80.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:BHARATFORG.

Bharat Forge Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SONACOMS	74 Outperform	₹299.58B	48.88	―	0.65%	7.34%	2.27%
BHARATFORG	69 Neutral	₹689.62B	63.74	―	0.58%	-3.52%	11.27%
SCHAEFFLER	69 Neutral	₹595.05B	55.86	―	0.73%	14.14%	16.91%
MRF	68 Neutral	₹637.07B	34.37	―	0.15%	9.56%	-4.82%
BALKRISIND	68 Neutral	₹442.88B	32.10	―	0.68%	3.72%	-15.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TIINDIA	59 Neutral	₹502.77B	80.35	―	0.13%	14.32%	-45.74%

Bharat Forge Ltd Corporate Events

Bharat Forge Releases Unaudited Financial Results for September 2025

Bharat Forge Limited has announced its unaudited financial results for the quarter and half-year ending September 30, 2025, which were published in the Financial Express and Loksatta newspapers. This announcement is part of the company’s compliance with SEBI regulations and provides stakeholders with insights into the company’s financial performance during this period.

Bharat Forge Announces Resignation of Independent Director

Bharat Forge Limited announced the resignation of Mr. Ravi Kapoor as a Non-Executive Independent Director, effective September 30, 2025, due to other professional commitments. His departure from the board and its committees marks a notable change in the company’s governance structure. Despite his resignation, Mr. Kapoor expressed confidence in Bharat Forge’s strategic direction and future growth, emphasizing the company’s ongoing transformation and potential value creation for stakeholders.