Bharat Forge Ltd Stock Analysis

BSE: 500493 | NSE: BHARATFORG | Forgings | Large Cap

BSE Share Price 23-Sep-2022 18:01
747.20 -34.85 (-4.46%)

DeciZen - Make an Informed Decision on Bharat Forge

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Bharat Forge Price Chart

P/E Ratio (CD) :
31.85
Market Cap :
34,788.8 Cr.
52-wk low :
595.9
52-wk high :
848
Bole Toh?

1. Is Bharat Forge Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Bharat Forge Ltd is a average quality company.

2. Is Bharat Forge Ltd undervalued or overvalued?

The key valuation ratios of Bharat Forge Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Bharat Forge Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Bharat Forge Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Bharat Forge:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bharat Forge Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 7.7%10.8%15.4%12.4%9.8%11%12%5.3%1.2%9.1%-
Value Creation Index -0.4-0.20.4-0.1-0.1-0.00.1-0.5-0.9-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,1676,7167,6316,8096,3968,35810,1468,0566,33610,46111,205
YoY Gr. Rt. %-30%13.6%-10.8%-6.1%30.7%21.4%-20.6%-21.4%65.1%-
Adj EPS 69.616.515.213.216.420.58.2119.823.5
YoY Gr. Rt. %-58.8%72.4%-8%-13%23.7%25.3%-60.1%-87.6%1843.1%-
BVPS (₹) 48.557.67473.388.499.9115.5112.1116.3141.1144.6
Adj Net Profit 28144776970861676395638147.69231,093
Cash Flow from Ops. 7357161,0351,3561,0529679111,5221,020506-
Debt/CF from Ops. 3.83.62.52.533.44.42.94.911.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 8.2%10.3%1%65.1%
Adj EPS 14.1%8.4%-1.2%1843.1%
BVPS 12.69.86.921.3
Share Price 17.4% 3.2% 18.3% -0.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 12.718.125.120.716.417.419.17.20.915.416.4
Op. Profit Mgn % 15.515.619.321.319.921.22014.113.618.917.8
Net Profit Mgn % 5.46.610109.599.55.31.29.19.8
Debt to Equity 1.210.710.80.70.80.80.90.9-
Working Cap Days 2111671581821941721702102451860
Cash Conv. Cycle 61523449746472100113840

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 16.40%

Debt to equity has declined versus last 3 years average to 0.86

Sales growth is good in last 4 quarters at 54.79%

Sales growth has been subdued in last 3 years 1.03%

Net Profit has been subdued in last 3 years -1.17%

Latest Financials - Bharat Forge Ltd.

Standalone Consolidated
TTM EPS (₹) 24.8 23.5
TTM Sales (₹ Cr.) 6,642 11,205
BVPS (₹.) 157.9 144.6
Reserves (₹ Cr.) 7,260 6,639
P/BV 4.73 5.17
PE 30.13 31.85
From the Market
52 Week Low / High (₹) 595.85 / 848.00
All Time Low / High (₹) 4.46 / 848.00
Market Cap (₹ Cr.) 34,789
Equity (₹ Cr.) 93.1
Face Value (₹) 2
Industry PE 26.2

Management X-Ray of Bharat Forge :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.007.207.207.127.12
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Bharat Forge

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Bharat Forge Ltd

Bharat Forge is a preferred Technology & Engineering driven development partner and global leader in metal forming. It serves several sectors including Automotive, Railways, Aerospace, Marine, Oil & Gas, Power, Construction and Mining. Being the world's largest forging company and amongst one of the best aerospace forging companies and automotive forging company, it has transcontinental presence across different manufacturing locations spread across India, Germany, Sweden, France and North America. It is also a leading supplier of various components for the aviation sector making it a renowned name amongst aerospace forging companies in India and around the world.

Part of the Kalyani Group, the company has the largest repository of metallurgical know-how, design & engineering expertise, and manufacturing prowess in the region, which has established it as one the leading forging manufacturers in India. It is backed by many years of experience in manufacturing a wide range of high performance, critical and safety components. It offers full service supply capability to its geographically dispersed marquee customers from concept to product design, engineering, manufacturing, testing & validation. Developing the company’s own technology, constantly improving its technical processes, adopting the latest manufacturing processes and continuously training its workforce to create a talent factory has been the cornerstone of the company’s success and has contributed towards making it a leading automotive forging company in India.

Business area of the company

The company manufactures an extensive array of critical and safety components for several sectors including Automobiles (across Commercial & Passenger Vehicle), Oil & Gas, Aerospace, Locomotives, Marine, Energy (across renewable and non-renewable sources), Construction, Mining and General Engineering.

Products of the company

Automotive Products: Crankshaft, Connecting Rod, Dosing Components, Common rail, Front Axle Beams, Steering Knuckles, Control Arm, Knuckle, Fork, Reinforcement Bracket, Main & Counter Shafts, Input Shaft & Output Shafts.

Power Products: Proof Machined Rotor, Fully Machined Rotor, Generator, Welded Rotor, Fully Machined, Proof Machined, Thrust Block, Trunion, Labryinth Seal, Bush, Pole End Plate, Wicket Gate, Pelton Bucket, Pelton Disc.

Oil & Gas Products: Spool Body, Mandrel, Connectors, Ring, Casing spool, Gate valve body, Shell, Y block, Quintplex fluid end, Single cyl fluid end, Double bop.

Rail Products: Crankshafts, Connecting Rod, Carrier Plston, Piston Crown, Top Deck End & Center, Retainer Cyl Head, Turbine Wheel Impeller Balance Assembly, Machined Compressor Impeller, Turbine Disc Bucket Assembly, Motor Support, Primary Support, Machined Locomotive Axle, Forged Portal Axle, Forged Gear Blank, Power Electronics.

Marine Products: Propeller, Marine Motor, Stern Tube, Crankshaft, Conrod, Piston Rod, Stock, Trunk, Pintle.

Aerospace Products: Blisk blade, OGV blade, Fan blade, Shaft, LPC Disc, HP Disc, Aft, Flap Track, Trailing Arm, Upper Torque Link.

Construction & Mining Products: Tracklink for Construction, Front Spindle For Construction, Machined Crankshaft, Injector Body.

Awards and Recognitions:

  • 2004: Included in the Forbes ‘Best under a Billion’ list for the second consecutive year.
  • 2009: Achieved a remarkable landmark by receiving the prestigious Golden Peacock Award in the field of Occupational Health & Safety. 
  • 2011: EEPC India National Award for Export Excellence 2009-2010.
  • 2013: Conferred upon with the prestigious international ‘Sword of Honour Award’ by the British Safety Council for company’s Health & Safety Management Systems.
  • 2014: Won prestigious ‘Rail Business--Product of the Year Award - 2014’.
  • 2015: Won the ‘Industry Excellence Award 2015’ in Manufacturing and Processing.
  • 2016: Won the prestigious Make in India Awards for ‘Indigenization through Make in India’.
  • 2017: Secured Second position under the category of Productivity in 8th Kaizen Competition conducted by ACMA.
  • 2017: Adjudged as one of Daimler AG's top global suppliers for the year 2016.
  • 2017: Recognized by General Motors as a 2016 Supplier of the Year Winner.
  • 2017: Awarded the prestigious TIME India Global Manufacturer for the Year 2017.
  • 2018: Won Supply Chain Management Award at the VE Commercial Vehicles Conference.
  • 2018: Awarded the prestigious ‘AIMA Managing India Awards - Indian MNC of the Year’.

Milestones:

  • 1961: Incorporation of the company.
  • 1966: Commercial Production begins. 
  • 1985: Initial exports in Europe.
  • 1990: Investment in state-of-the-art forging technology. 
  • 1990: Commissioning of 16000 MT press line.
  • 1991: Major break-through in Japan, USA and UK for critical supply of power-train & chassis components.
  • 2001: Commissioning of second 16000 MT press line. 
  • 2001: First M&A - Acquired order book of Dana.
  • 2002: Investment in Research & Development, Testing & Validation and state-of-the-art Heavy Duty Truck Crankshaft Machining facilities.
  • 2003: Established Global Manufacturing Footprint across Europe, North America and China.
  • 2004: Joined hands with India's premier institute of technology, BITs Pilani, to enhance internal talent.
  • 2004: Acquires CDP Aluminiumtechnik, Germany. 
  • 2007: Centre for Advanced Manufacturing takes shape in Baramati.
  • 2005: Signs JV Contract with FAW Corporation, China.
  • 2008: Commissioned India's largest commercial open forging press.
  • 2009: Inauguration of forging and high horse power, industrial - rail, marine and oil & gas crankshaft machining facility at Baramati.
  • 2010: Inauguration of the Ring Rolling facility at Baramati. Establishment of the Kalyani Center for Technology and Innovation.
  • 2012: Company's capital goods division won its first commercial order for two 660 MW supercritical turbine generators David Brown 
  • 2012: Opens its first industrial gearbox service and assembly centre in Hosur, India.
  • 2013: Supply of crankshaft for Indian rails, becoming the 1st indigenous supplier of crankshaft.
  • 2014: Safran and Bharat Forge form partnership to address opportunities in Indian civil and military aerospace.
  • 2015: Inauguration of ‘High Tech Rail Component Manufacturing Facility’ at Bharat Forge Centre for Advanced Manufacturing, Baramati.
  • 2015: Production starts at Alstom-Bharat Forge’s new turbine and generator manufacturing facility in India.
  • 2015: Acquisition of Oil & Gas Machining Company, Mecanique Generale Langroise (MGL) in France.
  • 2015: Bharat Forge and Rolls-Royce form agreement for supply of aero engine components.
  • 2016: Start of Metal Injection Molding Advanced Machining Research Centre.
  • 2016: Acquisition of Walker Forge Tennessee LLC in North America.
  • 2016: Divestment of Stake in Power Equipment JV with Alstom. 
  • 2016: Boeing awards 777X titanium forging contract to Bharat Forge.
  • 2017: Established Kalyani Centre for Manufacturing Innovation.
  • 2018: Established E-Mobility Research & Development Centre in MIRA Technology Park, UK.
  • 2018: Inaugurates ‘Industry 4.0 Centre of Excellence’ in partnership with PTC.
  • 2018: Takes a strategic stake in Electric Vehicle company, Tevva Motors (Jersey).
  • 2018: Announces strategic investment of upto Rs 30 crore for eventual stake of 45% in an EV startup, Tork Motorcycles.
  • 2019: Rolled out the ONE MILLIONTH finished machined crankshaft that powers heavy duty engines of Daimler AG.
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