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Last Updated on: 30 May, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 500493 | NSE: BHARATFORG

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.
INDUSTRYADDRESSCONTACT
ForgingsMundhwa, Pune Maharashtra 411036secretarial@bharatforge.com
http://www.bharatforge.com
Management
NamePosition Held
Mr. B N KalyaniChairman & Managing Director
Mr. G K AgarwalDeputy Managing Director
Mr. Amit B KalyaniDeputy Managing Director
Mr. B P KalyaniExecutive Director
Mr. S E TandaleExecutive Director
Mr. Kishore M SaletoreExecutive Director
Mr. Murali G SivaramanIndependent Director
Mr. Dipak B ManeIndependent Director
Ms. Sonia SinghIndependent Director
Mr. Pratap G PawarIndependent Director
Mrs. Lalita D GupteIndependent Director
Mr. P H RavikumarIndependent Director
Mr. Vimal R BhandariIndependent Director
Mr. K B S AnandIndependent Director

Basic Stock Data of Bharat Forge Ltd

Last Updated: May 13, 2024, 2:52 pm

Market Cap 65,916 Cr.
Current Price 1,415
High / Low1,474/753
Stock P/E71.8
Book Value 154
Dividend Yield0.49 %
ROCE13.3 %
ROE13.2 %
Face Value 2.00
PEG Ratio3.69

Competitors of Bharat Forge Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
MM Forgings Ltd (MMFL) 2,722 Cr. 1,1271,208/82520.2 3130.53 %15.1 %19.8 % 10.0
Kalyani Forge Ltd 159 Cr. 437573/23234.6 2960.69 %6.25 %3.52 % 10.0
Tirupati Forge Ltd 166 Cr. 17.021.8/6.7525.0 5.090.00 %18.8 %15.4 % 2.00
Ramkrishna Forgings Ltd 12,675 Cr. 701815/36537.1 1480.29 %18.7 %17.0 % 2.00
Amforge Industries Ltd 15.1 Cr. 10.517.2/4.36 8.830.00 %2.32 %2.14 % 2.00
Industry Average3,147.42 Cr458.5023.38154.180.30%12.23%11.57%5.20

Bharat Forge Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales1,3761,7232,0832,1082,3862,3953,5732,8513,0763,3533,6293,8773,774
Expenses1,2101,4431,6821,6671,8861,8953,0302,4262,6452,9143,1913,2823,153
Operating Profit166280401441499499543425432439438595621
OPM %12%16%19%21%21%21%15%15%14%13%12%15%16%
Other Income28-26152-213820170304437176751
Interest14342350232463405310997114124
Depreciation152161161167174176214181188186181206211
Profit before tax28-176269203341500337235235181177341337
Tax %105%-20%21%25%21%16%31%32%40%56%28%37%36%
Net Profit-1-21021215327042223216014279128214215
EPS in Rs0.00-4.494.483.305.829.055.063.533.131.772.914.804.88

Bharat Forge Ltd Quarterly Chart

Bharat Forge Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales6,2795,1676,7047,6226,8096,3968,35810,1468,0566,33610,46112,91014,634
Expenses5,2824,4195,7836,2325,3975,2766,6358,0986,9845,5048,47811,17412,540
Operating Profit9977489211,3901,4131,1211,7232,0481,0728321,9831,7372,094
OPM %16%14%14%18%21%18%21%20%13%13%19%13%14%
Other Income919429822614839146199109-138288124171
Interest186167169136116100107127171108160299445
Depreciation302320357362453452467521548612730736784
Profit before tax6003556931,1189929601,1961,599462-251,3818271,036
Tax %30%43%30%32%32%26%37%35%24%-399%22%39%
Net Profit4202024827606757117541,033349-1271,077508635
EPS in Rs8.875.3210.7116.3814.5715.1316.3822.177.51-2.7123.2311.3514.36
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:20%
5 Years:27%
3 Years:32%
1 Year:105%
Return on Equity
10 Years:14%
5 Years:10%
3 Years:12%
Last Year:13%

Last Updated: May 13, 2024, 2:52 pm

Bharat Forge Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital47474747474793939393939393
Reserves2,1372,2102,6373,3983,3674,0704,5575,2825,1255,3216,4766,6116,919
Borrowings2,7612,7842,5612,5463,3753,1243,2574,0294,4695,2715,9727,3137,504
Other Liabilities2,3902,5542,2902,2451,5041,6002,0692,1741,7952,4032,9514,2174,463
Total Liabilities7,3347,5957,5348,2368,2928,8419,97711,57811,48213,08815,49218,23518,979
Fixed Assets2,6532,9102,5342,6293,1343,2773,5003,6254,0024,7504,8706,1616,239
CWIP5176325838704094533448311,1439001,125701716
Investments4454168014968861,1921,5011,5241,6182,6072,6042,5692,368
Other Assets3,7203,6363,6174,2423,8633,9194,6325,5994,7204,8316,8938,8049,657
Total Assets7,3347,5957,5348,2368,2928,8419,97711,57811,48213,08815,49218,23518,979

Bharat Forge Ltd Reserves and Borrowings Chart

Bharat Forge Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6867357161,0351,3561,0529679111,5221,0205061,294
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 462-330-640-360-448-401-314368-381578310280
Net Cash Flow115173-16820819-86-69832687126-91

Bharat Forge Ltd Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow995.00746.00919.00-1.00-2.00-2.00-2.00-2.00-3.00827.00-4.00-6.00

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

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days475647417577857768817587
Inventory Days137188154131142161151160177249235191
Days Payable148153157144119127148118105167141132
Cash Conversion Cycle379145289811188119140163169147
Working Capital Days181822588164759077114112107
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

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters45.25%45.25%45.25%45.25%45.25%45.26%45.26%45.26%45.26%45.26%45.26%45.26%
FIIs25.30%25.10%23.36%19.80%18.82%19.30%17.88%16.17%15.79%16.28%16.60%16.48%
DIIs12.13%15.67%20.02%23.55%24.33%24.55%26.09%27.70%28.61%27.95%27.74%28.06%
Government0.16%0.16%0.16%0.16%0.16%0.16%0.18%0.18%0.18%0.18%0.18%0.18%
Public17.16%13.81%11.20%11.23%11.44%10.72%10.60%10.70%10.17%10.35%10.22%10.04%
No. of Shareholders1,36,9441,41,3461,51,0591,53,7181,56,4451,58,8451,55,7341,62,1051,56,6861,69,9541,79,6831,89,104

Bharat Forge Ltd Shareholding Pattern Chart

No. of Bharat Forge Ltd Shareholders

Bharat Forge Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Kotak Emerging Equity Fund - Regular Plan80519932.59878.96
Kotak Flexicap Fund - Regular Plan66000001.77720.46
DSP Mid Cap Fund61443544.46670.72
Mirae Asset Emerging Bluechip Fund51697211.94564.33
Kotak Equity Opportunities Fund - Regular Plan47000003.31513.05
Aditya Birla Sun Life Flexi Cap Fund36263862.24395.86
Mirae Asset Midcap Fund35650013.2389.16
Mirae Asset Tax Saver Fund29239871.77319.18
SBI Magnum Midcap Fund23435401.93255.82
Canara Robeco Emerging Equities23067031.39251.8

Bharat Forge Ltd ROCE Trend

Bharat Forge Ltd EPS Trend

Bharat Forge Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)11.3523.23-2.717.5122.17
Diluted EPS (Rs.)11.3523.23-2.717.5122.17
Cash EPS (Rs.)27.4339.5211.0620.1833.60
Book Value[Excl.RevalReserv]/Share (Rs.)144.78142.32116.98112.79116.10
Book Value[Incl.RevalReserv]/Share (Rs.)144.78142.32116.98112.79116.10
Revenue From Operations / Share (Rs.)277.26224.66136.08173.01217.89
PBDIT / Share (Rs.)41.6747.5022.1327.9748.50
PBIT / Share (Rs.)25.8731.828.9916.2137.32
PBT / Share (Rs.)18.4830.360.0910.8434.58
Net Profit / Share (Rs.)11.6423.84-2.088.4222.42
NP After MI And SOA / Share (Rs.)11.3523.23-2.717.5122.17
PBDIT Margin (%)15.0221.1416.2616.1622.25
PBIT Margin (%)9.3314.166.609.3717.12
PBT Margin (%)6.6613.510.076.2615.87
Net Profit Margin (%)4.1910.61-1.534.8610.28
NP After MI And SOA Margin (%)4.0910.34-1.994.3410.17
Return on Networth / Equity (%)7.8716.46-2.336.7019.19
Return on Capital Employeed (%)11.9215.604.839.9323.06
Return On Assets (%)2.876.93-0.953.028.86
Long Term Debt / Equity (X)0.260.270.400.350.31
Total Debt / Equity (X)1.020.860.840.740.70
Asset Turnover Ratio (%)0.500.480.320.420.65
Current Ratio (X)1.091.301.381.331.35
Quick Ratio (X)0.700.850.970.890.89
Inventory Turnover Ratio (X)1.691.821.151.362.41
Dividend Payout Ratio (NP) (%)61.686.450.0079.8522.55
Dividend Payout Ratio (CP) (%)25.783.850.0031.1214.99
Earning Retention Ratio (%)38.3293.550.0020.1577.45
Cash Earning Retention Ratio (%)74.2296.150.0068.8885.01
Interest Coverage Ratio (X)6.5013.799.577.6017.75
Interest Coverage Ratio (Post Tax) (X)2.977.342.943.759.21
Enterprise Value (Cr.)41707.4437790.5231897.4214235.7527149.11
EV / Net Operating Revenue (X)3.233.615.031.772.68
EV / EBITDA (X)21.4917.0930.9510.9312.02
MarketCap / Net Operating Revenue (X)2.783.124.381.352.35
Retention Ratios (%)38.3193.540.0020.1477.44
Price / BV (X)5.354.975.132.094.43
Price / Net Operating Revenue (X)2.783.124.381.352.35
EarningsYield0.010.030.000.030.04

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: ₹1,466.70

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: 3.65% compared to the current price ₹1415

Intrinsic Value: ₹1,752.11

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: 23.82% compared to the current price ₹1415

Last 5 Year EPS CAGR: 19.46%

*Investments are subject to market risks

Strength and Weakness of Bharat Forge Ltd Stock

StrengthWeakness
  1. The company has higher reserves (4,470.00 cr) compared to borrowings (4,228.15 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (8.08 cr) and profit (374.54 cr) over the years.
  1. The stock has a low average ROCE of 13.42%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 69.67, which may not be favorable.
  3. 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: 4.19%
      • 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: 11.92% (Industry Average ROCE: 14.81%)
      • 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%: 7.87% (Industry Average ROE: 15.4%)
      • 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): 2.97
      • 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: 0.70
      • 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: 71.8 (Industry average Stock P/E: 23.82)
      • 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: 1.02
      • 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 ₹1466.70.

What is the Market Cap of Bharat Forge Ltd?

The Market Cap of Bharat Forge Ltd is 65,916 Cr..

What is the current Stock Price of Bharat Forge Ltd as on 19 May 2024?

The current stock price of Bharat Forge Ltd as on 19 May 2024 is 1,415.

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 ₹1,474/753.

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

The Stock P/E of Bharat Forge Ltd is 71.8.

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 0.49 %.

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.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Bharat Forge Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE