Equity Analysis /
India

IN : Bharat Forge - Sales growth momentum is impressive

    Pramod Amthe
    Hitesh Thakurani
    CGS-CIMB
    16 May 2022
    Published by

    4QFY22 standalone EPS rise of 10% qoq to Rs5.7 is in line with our estimate but 6% higher vs. Bloomberg consensus aided by strong sales momentum. Consolidated EPS upgrade was capped at ~1% for FY23F-24F as risk of developed countries’ GDP slowdown and recession fears are areas of concern. We retain Add rating due to attractive P/E and P/BV valuation below mean level. US aluminum forging and EV parts sales ramp-up are key drivers.