Fundamental Analysis of Bharat Forge Ltd

About the Company - Bharat Forge Ltd

Bharat Forge Ltd. is a Public Limited Listed company incorporated on 19/06/1961 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L25209PN1961PLC012046 and registration number is 012046. Currently Company is involved in the business activities of Manufacture of other transport equipment. Company’s Total Operating Revenue is Rs. 6254.61 Cr. and Equity Capital is Rs. 93.13 Cr. for the Year ended 31/03/2022.

INDUSTRY	ADDRESS	CONTACT
Forgings	Mundhwa, Pune Maharashtra 411036	secretarial@bharatforge.com http://www.bharatforge.com

Management
Name	Position Held
Mr. B N Kalyani	Chairman & Managing Director
Mr. G K Agarwal	Deputy Managing Director
Mr. Amit B Kalyani	Deputy Managing Director
Mr. B P Kalyani	Executive Director
Mr. S E Tandale	Executive Director
Mr. Kishore M Saletore	Executive Director
Mr. Murali G Sivaraman	Independent Director
Mr. Dipak B Mane	Independent Director
Ms. Sonia Singh	Independent Director
Mr. Pratap G Pawar	Independent Director
Mrs. Lalita D Gupte	Independent Director
Mr. P H Ravikumar	Independent Director
Mr. Vimal R Bhandari	Independent Director
Mr. K B S Anand	Independent Director

Basic Stock Data of Bharat Forge Ltd

Last Updated: July 6, 2024, 12:20 pm

Market Cap	77,858 Cr.
Current Price	1,672
High / Low	1,826/840
Stock P/E	84.8
Book Value	154
Dividend Yield	0.54 %
ROCE	13.3 %
ROE	13.2 %
Face Value	2.00
PEG Ratio	4.36

Competitors of Bharat Forge Ltd

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
MM Forgings Ltd (MMFL)	3,068 Cr.	1,271	1,352/825	21.2	338	0.63 %	15.1 %	19.2 %	10.0
Tirupati Forge Ltd	265 Cr.	25.5	28.2/6.75	39.9	4.81	0.00 %	18.8 %	15.4 %	2.00
EL Forge Ltd	43.4 Cr.	21.4	23.7/9.04	14.2	11.1	0.00 %	%	%	10.0
Ramkrishna Forgings Ltd	17,793 Cr.	984	998/436	52.1	148	0.20 %	18.7 %	17.0 %	2.00
Amforge Industries Ltd	17.0 Cr.	11.8	17.2/4.40		8.83	0.00 %	3.55 %	3.17 %	2.00
Industry Average	4,993.67 Cr	395.34		22.83	163.84	0.24%	9.68%	11.37%	6.33

Bharat Forge Ltd Quarterly Results

Month	Sep 2020	Dec 2020	Mar 2021	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023
Sales	1,376	1,723	2,083	2,108	2,386	2,395	3,573	2,851	3,076	3,353	3,629	3,877	3,774
Expenses	1,210	1,443	1,682	1,667	1,886	1,895	3,030	2,426	2,645	2,914	3,191	3,282	3,153
Operating Profit	166	280	401	441	499	499	543	425	432	439	438	595	621
OPM %	12%	16%	19%	21%	21%	21%	15%	15%	14%	13%	12%	15%	16%
Other Income	28	-261	52	-21	38	201	70	30	44	37	17	67	51
Interest	14	34	23	50	23	24	63	40	53	109	97	114	124
Depreciation	152	161	161	167	174	176	214	181	188	186	181	206	211
Profit before tax	28	-176	269	203	341	500	337	235	235	181	177	341	337
Tax %	105%	-20%	21%	25%	21%	16%	31%	32%	40%	56%	28%	37%	36%
Net Profit	-1	-210	212	153	270	422	232	160	142	79	128	214	215
EPS in Rs	0.00	-4.49	4.48	3.30	5.82	9.05	5.06	3.53	3.13	1.77	2.91	4.80	4.88

Bharat Forge Ltd Quarterly Chart

Bharat Forge Ltd Profit & Loss

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	TTM
Sales	6,279	5,167	6,704	7,622	6,809	6,396	8,358	10,146	8,056	6,336	10,461	12,910	14,634
Expenses	5,282	4,419	5,783	6,232	5,397	5,276	6,635	8,098	6,984	5,504	8,478	11,174	12,540
Operating Profit	997	748	921	1,390	1,413	1,121	1,723	2,048	1,072	832	1,983	1,737	2,094
OPM %	16%	14%	14%	18%	21%	18%	21%	20%	13%	13%	19%	13%	14%
Other Income	91	94	298	226	148	391	46	199	109	-138	288	124	171
Interest	186	167	169	136	116	100	107	127	171	108	160	299	445
Depreciation	302	320	357	362	453	452	467	521	548	612	730	736	784
Profit before tax	600	355	693	1,118	992	960	1,196	1,599	462	-25	1,381	827	1,036
Tax %	30%	43%	30%	32%	32%	26%	37%	35%	24%	-399%	22%	39%
Net Profit	420	202	482	760	675	711	754	1,033	349	-127	1,077	508	635
EPS in Rs	8.87	5.32	10.71	16.38	14.57	15.13	16.38	22.17	7.51	-2.71	23.23	11.35	14.36
Dividend Payout %	23%	32%	21%	23%	26%	25%	27%	23%	47%	-74%	30%	62%

Bharat Forge Ltd Profit & Loss Yearly Chart

Bharat Forge Ltd Growth

Compounded Sales Growth
10 Years:	9%
5 Years:	9%
3 Years:	35%
TTM:	21%

Compounded Profit Growth
10 Years:	8%
5 Years:	-2%
3 Years:	61%
TTM:	101%

Stock Price CAGR
10 Years:	19%
5 Years:	31%
3 Years:	33%
1 Year:	108%

Return on Equity
10 Years:	14%
5 Years:	10%
3 Years:	12%
Last Year:	13%

Last Updated: June 17, 2024, 3:09 pm

Bharat Forge Ltd Balance Sheet

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Sep 2023
Equity Capital	47	47	47	47	47	47	93	93	93	93	93	93	93
Reserves	2,137	2,210	2,637	3,398	3,367	4,070	4,557	5,282	5,125	5,321	6,476	6,611	6,919
Borrowings	2,761	2,784	2,561	2,546	3,375	3,124	3,257	4,029	4,469	5,271	5,972	7,313	7,504
Other Liabilities	2,390	2,554	2,290	2,245	1,504	1,600	2,069	2,174	1,795	2,403	2,951	4,217	4,463
Total Liabilities	7,334	7,595	7,534	8,236	8,292	8,841	9,977	11,578	11,482	13,088	15,492	18,235	18,979
Fixed Assets	2,653	2,910	2,534	2,629	3,134	3,277	3,500	3,625	4,002	4,750	4,870	6,161	6,239
CWIP	517	632	583	870	409	453	344	831	1,143	900	1,125	701	716
Investments	445	416	801	496	886	1,192	1,501	1,524	1,618	2,607	2,604	2,569	2,368
Other Assets	3,720	3,636	3,617	4,242	3,863	3,919	4,632	5,599	4,720	4,831	6,893	8,804	9,657
Total Assets	7,334	7,595	7,534	8,236	8,292	8,841	9,977	11,578	11,482	13,088	15,492	18,235	18,979

Bharat Forge Ltd Reserves and Borrowings Chart

Bharat Forge Ltd Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Cash from Operating Activity	686	735	716	1,035	1,356	1,052	967	911	1,522	1,020	506	1,294
Cash from Investing Activity	-1,034	-232	-244	-467	-888	-737	-722	-1,196	-1,114	-1,511	-690	-1,666
Cash from Financing Activity	462	-330	-640	-360	-448	-401	-314	368	-381	578	310	280
Net Cash Flow	115	173	-168	208	19	-86	-69	83	26	87	126	-91

Bharat Forge Ltd Free Cash Flow

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Free Cash Flow	995.00	746.00	919.00	-1.00	-2.00	-2.00	-2.00	-2.00	-3.00	827.00	-4.00	-6.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Bharat Forge Ltd Free Cash Flow Chart

Bharat Forge Ltd Financial Efficiency Indicators

Month	Mar 2012	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Debtor Days	47	56	47	41	75	77	85	77	68	81	75	87
Inventory Days	137	188	154	131	142	161	151	160	177	249	235	191
Days Payable	148	153	157	144	119	127	148	118	105	167	141	132
Cash Conversion Cycle	37	91	45	28	98	111	88	119	140	163	169	147
Working Capital Days	18	18	22	58	81	64	75	90	77	114	112	107
ROCE %	17%	11%	15%	21%	17%	13%	18%	20%	7%	3%	11%	8%

Bharat Forge Ltd Financial Efficiency Indicators Chart

Bharat Forge Ltd Share Holding Pattern

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024
Promoters	45.25%	45.25%	45.25%	45.25%	45.25%	45.26%	45.26%	45.26%	45.26%	45.26%	45.26%	45.26%
FIIs	25.30%	25.10%	23.36%	19.80%	18.82%	19.30%	17.88%	16.17%	15.79%	16.28%	16.60%	16.48%
DIIs	12.13%	15.67%	20.02%	23.55%	24.33%	24.55%	26.09%	27.70%	28.61%	27.95%	27.74%	28.06%
Government	0.16%	0.16%	0.16%	0.16%	0.16%	0.16%	0.18%	0.18%	0.18%	0.18%	0.18%	0.18%
Public	17.16%	13.81%	11.20%	11.23%	11.44%	10.72%	10.60%	10.70%	10.17%	10.35%	10.22%	10.04%
No. of Shareholders	1,36,944	1,41,346	1,51,059	1,53,718	1,56,445	1,58,845	1,55,734	1,62,105	1,56,686	1,69,954	1,79,683	1,89,104

Bharat Forge Ltd Shareholding Pattern Chart

No. of Bharat Forge Ltd Shareholders

Bharat Forge Ltd Mutual Fund Holdings

Fund Name	No of Shares	AUM (%)	Amount Invested (Cr)	Previous Number of Shares	Previous Date	Percentage Change
Kotak Emerging Equity Fund - Regular Plan	8,132,726	2.57	1004.6	3,540,000	2024-07-05	129.74%
Kotak Flexicap Fund - Regular Plan	6,600,000	1.84	815.27	3,540,000	2024-07-05	86.44%
DSP Mid Cap Fund	5,797,525	4.33	716.14	3,540,000	2024-07-05	63.77%
Kotak Equity Opportunities Fund - Regular Plan	4,700,000	3.17	580.57	3,540,000	2024-07-05	32.77%
Mirae Asset Large & Midcap Fund	3,772,632	1.4	466.01	3,540,000	2024-07-05	6.57%
Aditya Birla Sun Life Flexi Cap Fund	3,540,000	2.23	437.28	3,540,000	2024-07-05	0%
Nippon India Growth Fund	3,300,000	1.67	407.63	3,540,000	2024-07-05	-6.78%
Mirae Asset Midcap Fund	2,661,743	2.29	328.79	3,540,000	2024-07-05	-24.81%
SBI Magnum Midcap Fund	2,343,540	1.81	289.49	3,540,000	2024-07-05	-33.8%
Canara Robeco Emerging Equities	2,156,703	1.34	266.41	3,540,000	2024-07-05	-39.08%

Bharat Forge Ltd ROCE Trend

Bharat Forge Ltd EPS Trend

Bharat Forge Ltd Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	2.00	2.00	2.00	2.00	2.00
Basic EPS (Rs.)	20.43	11.35	23.23	-2.71	7.51
Diluted EPS (Rs.)	20.43	11.35	23.23	-2.71	7.51
Cash EPS (Rs.)	37.65	27.43	39.52	11.06	20.18
Book Value[Excl.RevalReserv]/Share (Rs.)	153.88	144.78	142.32	116.98	112.79
Book Value[Incl.RevalReserv]/Share (Rs.)	153.88	144.78	142.32	116.98	112.79
Revenue From Operations / Share (Rs.)	336.79	277.26	224.66	136.08	173.01
PBDIT / Share (Rs.)	59.82	41.67	47.50	22.13	27.97
PBIT / Share (Rs.)	41.60	25.87	31.82	8.99	16.21
PBT / Share (Rs.)	30.79	18.48	30.36	0.09	10.84
Net Profit / Share (Rs.)	19.43	11.64	23.84	-2.08	8.42
NP After MI And SOA / Share (Rs.)	20.43	11.35	23.23	-2.71	7.51
PBDIT Margin (%)	17.76	15.02	21.14	16.26	16.16
PBIT Margin (%)	12.35	9.33	14.16	6.60	9.37
PBT Margin (%)	9.14	6.66	13.51	0.07	6.26
Net Profit Margin (%)	5.76	4.19	10.61	-1.53	4.86
NP After MI And SOA Margin (%)	6.06	4.09	10.34	-1.99	4.34
Return on Networth / Equity (%)	13.26	7.87	16.46	-2.33	6.70
Return on Capital Employeed (%)	19.23	11.92	15.60	4.83	9.93
Return On Assets (%)	4.91	2.87	6.93	-0.95	3.02
Long Term Debt / Equity (X)	0.25	0.26	0.27	0.40	0.35
Total Debt / Equity (X)	1.05	1.02	0.86	0.84	0.74
Asset Turnover Ratio (%)	0.83	0.50	0.48	0.32	0.42
Current Ratio (X)	1.08	1.09	1.30	1.38	1.33
Quick Ratio (X)	0.73	0.70	0.85	0.97	0.89
Inventory Turnover Ratio (X)	2.25	1.69	1.82	1.15	1.36
Dividend Payout Ratio (NP) (%)	0.00	61.68	6.45	0.00	79.85
Dividend Payout Ratio (CP) (%)	0.00	25.78	3.85	0.00	31.12
Earning Retention Ratio (%)	0.00	38.32	93.55	0.00	20.15
Cash Earning Retention Ratio (%)	0.00	74.22	96.15	0.00	68.88
Interest Coverage Ratio (X)	5.67	6.50	13.79	9.57	7.60
Interest Coverage Ratio (Post Tax) (X)	2.87	2.97	7.34	2.94	3.75
Enterprise Value (Cr.)	58418.42	41707.44	37790.52	31897.42	14235.75
EV / Net Operating Revenue (X)	3.73	3.23	3.61	5.03	1.77
EV / EBITDA (X)	20.97	21.49	17.09	30.95	10.93
MarketCap / Net Operating Revenue (X)	3.35	2.78	3.12	4.38	1.35
Retention Ratios (%)	0.00	38.31	93.54	0.00	20.14
Price / BV (X)	7.33	5.35	4.97	5.13	2.09
Price / Net Operating Revenue (X)	3.35	2.78	3.12	4.38	1.35
EarningsYield	0.01	0.01	0.03	0.00	0.03

Bharat Forge Ltd Profitability Ratios (%)

Bharat Forge Ltd Liquidity Ratios

Bharat Forge Ltd Liquidity Ratios (%)

Bharat Forge Ltd Interest Coverage Ratios (%)

Bharat Forge Ltd Valuation Ratios

Fair Value

Fair Value: 1,733.12

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 3.66% compared to the current price 1672

Intrinsic Value: 2,070.38

Calculation basis:

Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 23.83% compared to the current price ₹1672

Last 5 Year EPS CAGR: 19.46%

*Investments are subject to market risks

Strength and Weakness of Bharat Forge Ltd Stock

Strength	Weakness
The company has higher reserves (4,470.00 cr) compared to borrowings (4,228.15 cr), indicating strong financial stability. The company has shown consistent growth in sales (8.08 cr) and profit (374.54 cr) over the years.	The stock has a low average ROCE of 13.42%, which may not be favorable. The stock has a high average Working Capital Days of 69.67, which may not be favorable. The stock has a high average Cash Conversion Cycle of 103.00, which may not be favorable.

Should I Buy Bharat Forge Ltd Share Now?

Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Bharat Forge Ltd:
1. ✓ Net Profit Margin: 5.76%
  - Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
2. ROCE: 19.23% (Industry Average ROCE: 10.41%)
  - ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
3. ROE%: 13.26% (Industry Average ROE: 13.02%)
  - ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
4. ✓ Interest Coverage Ratio (Post Tax): 2.87
  - Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
5. ✗ Quick Ratio: 0.73
  - Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
6. ✗ Stock P/E: 84.8 (Industry average Stock P/E: 17.86)
  - Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
7. ✗ Total Debt / Equity: 1.05
  - Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
Stock Rating: ★★★☆☆

FAQ

What is the latest fair value of Bharat Forge Ltd?

The latest fair value of Bharat Forge Ltd is ₹1733.12.

What is the Market Cap of Bharat Forge Ltd?

The Market Cap of Bharat Forge Ltd is 77,858 Cr..

What is the current Stock Price of Bharat Forge Ltd as on 06 July 2024?

The current stock price of Bharat Forge Ltd as on 06 July 2024 is 1,672.

What is the High / Low of Bharat Forge Ltd stocks in FY 2024?

In FY 2024, the High / Low of Bharat Forge Ltd stocks is 1,826/840.

What is the Stock P/E of Bharat Forge Ltd?

The Stock P/E of Bharat Forge Ltd is 84.8.

What is the Book Value of Bharat Forge Ltd?

The Book Value of Bharat Forge Ltd is 154.

What is the Dividend Yield of Bharat Forge Ltd?

The Dividend Yield of Bharat Forge Ltd is 0.54 %.

What is the ROCE of Bharat Forge Ltd?

The ROCE of Bharat Forge Ltd is 13.3 %.

What is the ROE of Bharat Forge Ltd?

The ROE of Bharat Forge Ltd is 13.2 %.

What is the Face Value of Bharat Forge Ltd?

The Face Value of Bharat Forge Ltd is 2.00.