Bharat Forge Ltd - Stock Valuation and Financial Performance

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

Bharat Forge Share Price

1,135 23.90 2.15%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Bharat Forge

Overall Rating
Bole Toh

1. Quality

2. Valuation

Fair

3. Price Trend

Semi Strong

Bharat Forge stock performance -

mw4me loader
P/E Ratio (CD):
60.81
Market Cap:
51,731.6 Cr.
52-wk low:
744
52-wk high:
1,330

Is Bharat Forge Ltd an attractive stock to invest in?

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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 10.8%15.4%12%9.8%11%12.5%4.9%1.1%10%5.6%-
Value Creation
Index
-0.20.4-0.1-0.10.00.1-0.6-0.9-0.1-0.5-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 6,7167,6226,8096,3968,35810,1468,0566,33610,46112,91015,147
Sales YoY Gr.-13.5%-10.7%-6.1%30.7%21.4%-20.6%-21.4%65.1%23.4%-
Adj EPS 9.616.614.713.216.421.47.40.721.91118.3
YoY Gr.-73.2%-11.8%-9.7%23.8%30.8%-65.6%-90.8%3122.1%-50%-
BVPS (₹) 57.67473.388.499.9115.5112.1116.3141.1143.9156
Adj Net
Profit
44777368261676399734331.61,020510851
Cash Flow from Ops. 7161,0351,3561,0529679111,5221,0205061,294-
Debt/CF from Ops. 3.62.52.533.44.42.94.911.25.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.5%9.1%17%23.4%
Adj EPS 1.5%-7.7%14.1%-50%
BVPS10.7%7.6%8.7%2%
Share Price 18.7% 18.1% 24.6% 51.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
18.125.319.916.417.419.96.50.6177.712.2
Op. Profit
Mgn %
15.619.421.319.921.22014.113.618.913.815.7
Net Profit
Mgn %
6.610.1109.799.84.30.59.73.85.6
Debt to
Equity
10.710.80.70.80.80.90.91-
Working Cap
Days
165158182193172170210245184198114
Cash Conv.
Cycle
52344974647210011383955

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 12.20%

Sales growth is growing at healthy rate in last 3 years 17.02%

Net Profit is growing at healthy rate in last 3 years 14.11%

Sales growth is good in last 4 quarters at 18.88%

Debt to equity has increased versus last 3 years average to 1.01

Latest Financials - Bharat Forge Ltd.

Standalone Consolidated
TTM EPS (₹) 27.5 18.3
TTM Sales (₹ Cr.) 8,637 15,147
BVPS (₹.) 183.3 156
Reserves (₹ Cr.) 8,442 7,172
P/BV 6.06 7.12
PE 40.42 60.81
From the Market
52 Week Low / High (₹) 744.00 / 1330.00
All Time Low / High (₹) 4.46 / 1330.00
Market Cap (₹ Cr.) 51,732
Equity (₹ Cr.) 93.1
Face Value (₹) 2
Industry PE 37

Management X-Ray of Bharat Forge:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *7.207.207.127.127.127.127.127.127.127.12
* 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 (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales6,7167,6226,8096,3968,35810,1468,0566,33610,46112,910
Operating Expenses 5,6866,1815,4015,1456,6418,1256,9465,4758,49311,208
Manufacturing Costs1,9321,8381,2591,1551,4661,7221,3611,1441,8372,293
Material Costs2,4612,8832,5682,4363,2814,2143,5772,6344,2165,961
Employee Cost 7899049159311,0891,2461,1951,0711,4651,563
Other Costs 5045566586238059438136259751,391
Operating Profit 1,0301,4411,4081,2511,7172,0211,1108621,9681,702
Operating Profit Margin (%) 15.3%18.9%20.7%19.6%20.5%19.9%13.8%13.6%18.8%13.2%
Other Income 125137132119142230188169244238
Interest 169136116100107127171108160299
Depreciation 357362453452461513543612730736
Exceptional Items 10443-5128-950-79-30692-46
Profit Before Tax 7321,1229669471,1961,599462-251,381827
Tax 210359316249442566112102303319
Profit After Tax 5227646496987541,033349-1271,077508
PAT Margin (%) 7.8%10.0%9.5%10.9%9.0%10.2%4.3%-2.0%10.3%3.9%
Adjusted EPS (₹)10.716.414.615.116.422.27.5-2.723.211.4
Dividend Payout Ratio (%)21%23%26%25%27%23%47%-74%30%62%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 2,6833,4443,4134,1164,6525,3765,2205,4156,5696,702
Share Capital 47474747939393939393
Reserves 2,6373,3983,3674,0704,5595,2835,1275,3226,4766,609
Minority Interest17-2-410293032325636
Debt2,0072,3652,9432,3212,7113,7733,8784,5805,1276,105
Long Term Debt1,5211,9821,6381,0591,1261,6791,8752,2171,7871,751
Short Term Debt4863831,3051,2621,5852,0942,0042,3633,3394,353
Trade Payables1,0551,1398378461,3271,3661,0311,2071,6312,151
Others Liabilities 1,7711,2881,1021,5471,2581,0331,3211,8542,1093,241
Total Liabilities 7,5358,2348,2928,8419,97711,57811,48213,08815,49218,235

Fixed Assets

Gross Block5,3945,6986,8337,2334,9395,5526,4027,6758,24610,268
Accumulated Depreciation2,8603,0703,6993,9561,4401,9272,4002,9173,3774,107
Net Fixed Assets2,5342,6293,1343,2773,4993,6244,0024,7584,8706,161
CWIP 5838704094533448311,1439001,125701
Investments 8014968851,1921,5011,5241,6182,6072,6042,569
Inventories1,0391,0349971,0751,3601,8451,7351,7942,7103,126
Trade Receivables8668531,4021,3411,9372,1481,4941,4102,1623,087
Cash Equivalents 4236824493363044755754736031,040
Others Assets1,2891,6711,0161,1671,0311,1329161,1461,4181,551
Total Assets 7,5358,2348,2928,8419,97711,57811,48213,08815,49218,235

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 7161,0351,3561,0529679111,5221,0205061,294
PBT 7321,1229669471,1961,61046251,414860
Adjustment 382441497399562526833725672888
Changes in Working Capital -163-119198-21-398-675461384-1227-36
Tax Paid -211-409-304-273-393-550-233-93-353-417
Cash Flow From Investing Activity -187-467-927-684-814-1,175-1,132-1,511-690-1,671
Capex -20-709-890-644-568-1,132-957-891-965-970
Net Investments -414189-103-94-272-78-160-642405-382
Others 2465367532634-1621-130-320
Cash Flow From Financing Activity -640-360-448-401-314368-381578310280
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing -3284100000000
Interest Paid -170-146-121-105-87-104-1380-144-239
Dividend Paid -122-152-268-70-210-233-2790-164-325
Others -20-103-60-226-1770436578619844
Net Cash Flow -111208-19-33-161104887126-97
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)21.1424.9218.9418.5317.220.596.59-2.3917.977.66
ROCE (%)17.5322.3916.9314.9217.1919.946.670.8213.618.75
Asset Turnover Ratio0.910.990.850.770.890.940.70.520.740.77
PAT to CFO Conversion(x)1.371.352.091.511.280.884.36N/A0.472.55
Working Capital Days
Receivable Days44405976717383846274
Inventory Days584953575358811027882
Payable Days116117136126121117122155123116

Bharat Forge Ltd Stock News

Bharat Forge Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Bharat Forge on 28-Mar-2024 16:01 is ₹1,135.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Bharat Forge stood at ₹51,731.6.
The latest P/E ratio of Bharat Forge as of 28-Mar-2024 16:01 is 40.42.
The latest P/B ratio of Bharat Forge as of 28-Mar-2024 16:01 is 6.06.
The 52-week high of Bharat Forge is ₹1,330 and the 52-week low is ₹744.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Bharat Forge is ₹8,637 ( Cr.) .

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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