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INVESTMENT INSIGHTS

Check Before You Invest : Bharat Forge Ltd

BSE: 500493 NSE: BHARATFORG ISIN: INE465A01025
  |   Sector:  Automobiles   |   Industry:  Forgings

Snapshot

Q.1 Which industry/sub-sector does Bharat Forge Ltd belong to?
Bharat Forge Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.
Q.2 Is Bharat Forge Ltd a good quality company?
Bharat Forge Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Bharat Forge Ltd undervalued or overvalued?
Bharat Forge Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Bharat Forge Ltd a good buy now?
Bharat Forge Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Bharat Forge Ltd?
Bharat Forge Ltd revenue growth is -3.6% for FY-2025 , which is below its 5 year CAGR of 13.4% , indicating slower growth.
Q.2 Gross Profit margin of Bharat Forge Ltd?
Bharat Forge Ltd Gross profit margin which is the profit after deduction of direct costs, is 16.3% for FY-2025 , which is above its 5 year median of 14.6% , indicating increasing margins.
Q.3 Operating Profit Margin of Bharat Forge Ltd?
Bharat Forge Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.95% for FY-2025 , which is above its 5 year median of 16.39% indicating increasing margins.
Q.4 Net Profit Margin of Bharat Forge Ltd?
Bharat Forge Ltd Net Profit Margin is 6.04% for FY-2025 , is above with its 5 year median of 5.8%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 16.3 14.6
Operating Profit Margin 17.95 16.39
Net Profit Margin 6.04 5.8
Q.5 Return on Asset of Bharat Forge Ltd?
Bharat Forge Ltd Return on Asset is 4.67%, which is in line with its 5 year historical median of 4.67%, indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Bharat Forge Ltd?
Bharat Forge Ltd Return on equity is 11.14% for FY-2025 , which is in line with its historical median of 11.14%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Bharat Forge Ltd?
Bharat Forge Ltd Return on capital employed is 12.43% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Bharat Forge Ltd?
Bharat Forge Ltd Cash conversion cycle is 87 days, above its historical median of 87 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.78 0.77
ROE 11.14 11.14
ROCE 12.43 12.43
Cash Conversion Cycle 87 days 87 days
Q.9 Debt to Equity ratio of Bharat Forge Ltd?
Bharat Forge Ltd Debt-to-Equity ratio is 0.68 , which is lower with the industry average of 0.92 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Bharat Forge Ltd?
Bharat Forge Ltd Debt to cash flow from operations is 3.48 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bharat Forge Ltd?
Promoters hold 44.07% of the Bharat Forge Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bharat Forge Ltd vs industry peers?
Bharat Forge Ltd revenue CAGR is 13.42% , compared to the industry median CAGR of 13.42% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 15,122.8 12,910.3
Gross Profit 2,465.1 2,039.9
Operating Profit 2,617 1,968
Net Profit 913 910
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.78 0.77
ROE 11.14 11.14
ROCE 12.43 12.43
Cash Conversion Cycle (days) 86.75 87

Valuation & price assessment

Q.1 Stock return of Bharat Forge Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 16.2% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 16.2% 26% 33.8% 74.3%
Q.3 Valuation ratios of Bharat Forge Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 78.56 0.00 50.79
Price to Book 9.2 4.58 3.87
Price to Sales 5.5 3.39 1.86
EV to EBITDA 30.97 30.82 16.47

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