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Bharat Forge Is On A Strong Growth Track: Motilal Oswal



Motilal Oswal has issued a research report pointing out that Bharat Forge’s earnings’ growth will accelerate at 27% CAGR during FY 2014 to 2017 and that it will continue to out-perform




Valuations attractive for global leader in forgings; Buy

Bharat Forge is primed for recovery in the global investment cycle. While the stock has outperformed over the last six months, there are several triggers for continued outperformance. These include: (a) volume recovery led benefit of operating leverage, (b) improving segment mix, (c) balance sheet deleveraging, and (d) improvement in capital efficiencies. Valuations at ~17.9x/14.9x FY16/FY17E consolidated EPS of INR32/INR39 are attractive for a global leader in forgings and at a discount to the 5/10 year average of 22x/26x. We initiate coverage with a Buy rating.

Click here to download the research report on Motilal Oswal
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