Bharat Forge Stocks Surge 14% in Two Sessions: Is it Time to Invest in BFRG Shares?

• After a significant 13.32% surge in the previous trading session, Bharat Forge’s shares continued their winning streak in today’s session, edging up by another 0.54% to ₹1,412 each.
• Although the company’s results, which were released during Wednesday’s market hours, aligned with analysts’ estimates, the management sounded optimistic regarding demand in FY25, which boosted investor sentiment towards the stock.
• The company anticipates that FY25 will be a year of growth, primarily propelled by the defence business, the industrial casting business, and ongoing enhancements in capacity utilisation within the overseas operations.

Bharat Forge’s shares surge as the company’s management sounds optimistic about FY25, primarily driven by the defence business, the industrial casting business, and ongoing enhancements in capacity utilisation within the overseas operations.

Technical Outlook

Osho Krishan, Senior Analyst, Technical & Derivatives, Angel One Ltd., said,” The stock has been in a stellar bull run, hovering in a cycle of higher highs and higher lows in all time frames. In the last couple of sessions that counter witnessed a strong spurt in price, volume soaring to record highs.”

Results Card

The company wrapped up the March quarter on a robust note, with a 16.6% surge in topline to ₹2,329 crore, while EBITDA soared by 25.1% to ₹654 crore, yielding EBITDA margins of 28.1% in Q4 FY24. Over the full year, the topline expanded by 18.4% to ₹8,969 crore, and EBITDA surged by 28.0% to ₹2,469 crore.

Optimistic View

Following the company’s Q4 and FY24 performance, domestic brokerage firm Kotak Institutional Equities has raised its FY2024–26E consolidated EPS estimates by 2–6%. This increase is primarily driven by higher revenue growth assumptions, attributed to new order wins in the defence segment.

Conclusion

Bharat Forge’s shares have been on a significant surge, backed by the company’s optimistic outlook for FY25 and robust Q4 results. Analysts suggest utilising dips to add long positions to the counter, considering the short- to medium-term time frame.