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500493: Expanded Aerospace Agreements Will Support Balanced Medium Term Prospects

500493: Margins Will Remain Pressured Despite Expanding International Aerospace Partnerships

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500493
AnalystConsensusTarget
Not Invested
Published 29 Nov 2024

Update shared on 14 Dec 2025

Fair value Increased 0.70%
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Narrative Update on Bharat Forge

Analysts have modestly raised their fair value estimate for Bharat Forge from Rs 1,310.72 to Rs 1,319.96. This reflects slightly lower perceived risk, broadly steady growth and margin expectations, and a marginally higher future earnings multiple.

What's in the News

  • Board meeting scheduled on November 11, 2025 to approve unaudited standalone and consolidated financial results for Q2 and H1 FY2026, and to consider raising funds via term loans, non convertible debentures or other debt instruments (company filing)
  • Rolls Royce signs an expanded agreement with Bharat Forge to manufacture and supply fan blades for its Pearl 700 and Pearl 10X engines, strengthening Bharat Forge's role in global aerospace supply chains (company announcement)
  • Tripartite MoU signed with BEML and Data Patterns to jointly support the Advanced Medium Combat Aircraft programme and participate in the Aeronautical Development Agency's Expression of Interest (company announcement)

Valuation Changes

  • The fair value estimate increased slightly from ₹1,310.72 to ₹1,319.96, reflecting a modest uplift of about 0.7 percent.
  • The discount rate edged down marginally from 15.13 percent to 14.99 percent, implying a slightly lower perceived risk profile.
  • Revenue growth was trimmed very slightly from 13.18 percent to 13.17 percent, indicating essentially unchanged growth expectations.
  • The net profit margin held steady at 11.77 percent, highlighting no meaningful change in margin assumptions.
  • The future P/E rose slightly from 38.92x to 39.06x, indicating a marginally higher valuation multiple applied to forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.