Bharat Forge Limited
Bharat Forge is engaged in the manufacturing and selling of forged and machined Compoundant for auto and industry sector.The company belongs to the Kalyani Group which has an annual turnover of more than USD 3 Billion. Apart from the forging Industry, the group has a presence in engineering steel, automotive, industrial, renewable energy, urban infrastructure, and specialty chemicals and maintains a leading position in various business segments.
Business Segments
- Forgings (85% in FY24 vs 96% in FY22): The company produces steel forgings, finished machined crankshafts, front axles assembly and components, road wheel, transmission parts, seal rings, clamp, hub, lightweight components, etc for automotive and industrial sectors.
- Defense & Others (15% in FY24 vs 4% in FY22%): The defense arm, Kalyani Strategic Systems Limited (KSSL), offers artillery systems, protected vehicles, armored vehicles upgrades, ammunition, air defense solutions.
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 10,461 | 12,910 | 15,682 |
| Sales Growth % | 65.10% | 23.41% | 21.47% |
| Expenses | 8,478 | 11,174 | 13,121 |
| Operating Profit | 1,983 | 1,737 | 2,562 |
| OPM % | 19% | 13% | 16% |
| Net Profit | 1,077 | 508 | 910 |
| EPS in Rs | 23.23 | 11.35 | 20.43 |
Synopsis of Financials
- In FY23 and FY24, the company recorded an order inflow of Rs. 10,200 Cr, including Rs. 6,494 Cr from defense and the remaining Rs. 3,706 Cr from the core business.
- Q2 standalone performance remained resilient with a flat top line at ₹2,247 crores.
- EBITDA margin expanded by 140 basis points to 28.8%, driven by a favorable product mix.
Final Outlook
Bharat forge is showing a 66% profit and sales growth is also increased by 16% , showing a strong financial. Company is also expanding their businesses in EV sector which is a emerging sector in current market condition and they also expanding their businesses in defense sector, they got order from Indian army for the production of guns of amount 2000 Cr, which boost their businesses and increases profitability. Company is the largest forging company in India . It is the largest exporting company of automotive parts in India. Company has some famous client like Mercedes. On comparing with their peers company is showing the highest growth and have largest market capitalization . It is also the critical supplier of aerospace parts and defense parts in India and in world. Company is exporting their 95% manufacturing in other countries. According to me company has strong financial and large customer base which make the share of the company very stable and i recommend to BUY the share of the company because they are expanding their business in different sector.
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