Bharat Forge Limited

BSE:500493 Stock Report

Market Cap: ₹615.9b

Bharat Forge Valuation

Is 500493 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500493 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500493 (₹1322.75) is trading above our estimate of fair value (₹689.55)

Significantly Below Fair Value: 500493 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500493?

Key metric: As 500493 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500493. This is calculated by dividing 500493's market cap by their current earnings.
What is 500493's PE Ratio?
PE Ratio65x
Earnings₹9.47b
Market Cap₹615.86b

Price to Earnings Ratio vs Peers

How does 500493's PE Ratio compare to its peers?

The above table shows the PE ratio for 500493 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average71.1x
532539 Uno Minda
64.4x21.0%₹596.9b
TIINDIA Tube Investments of India
116.1x17.1%₹698.5b
SONACOMS Sona BLW Precision Forgings
74.5x25.1%₹422.8b
517334 Samvardhana Motherson International
29.5x21.2%₹1.1t
500493 Bharat Forge
65x28.1%₹615.9b

Price-To-Earnings vs Peers: 500493 is good value based on its Price-To-Earnings Ratio (65x) compared to the peer average (71.1x).

Price to Earnings Ratio vs Industry

How does 500493's PE Ratio compare vs other companies in the IN Auto Components Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.9x-31.3%US$384.13m
INNOVATIVE Innovative Tyres & Tubes
0.3xn/aUS$1.22m
505100 India Radiators
0.8xn/aUS$94.67k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
500493 65.0xIndustry Avg. 30.9xNo. of Companies16PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500493 is expensive based on its Price-To-Earnings Ratio (65x) compared to the Indian Auto Components industry average (30.4x).

Price to Earnings Ratio vs Fair Ratio

What is 500493's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500493 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio65x
Fair PE Ratio43.5x

Price-To-Earnings vs Fair Ratio: 500493 is expensive based on its Price-To-Earnings Ratio (65x) compared to the estimated Fair Price-To-Earnings Ratio (43.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500493 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,322.75
₹1,465.77
+10.8%
17.7%₹1,859.00₹920.00n/a26
Nov ’25₹1,419.15
₹1,555.08
+9.6%
18.5%₹2,000.00₹950.00n/a26
Oct ’25₹1,529.05
₹1,545.89
+1.1%
18.4%₹2,000.00₹950.00n/a27
Sep ’25₹1,587.00
₹1,517.07
-4.4%
19.1%₹2,000.00₹900.00n/a28
Aug ’25₹1,716.90
₹1,410.52
-17.8%
18.2%₹2,000.00₹850.00n/a27
Jul ’25₹1,666.10
₹1,364.59
-18.1%
16.5%₹1,650.00₹850.00n/a27
Jun ’25₹1,555.10
₹1,350.50
-13.2%
15.9%₹1,650.00₹850.00n/a28
May ’25₹1,271.15
₹1,180.22
-7.2%
13.5%₹1,450.00₹800.00n/a27
Apr ’25₹1,148.90
₹1,163.93
+1.3%
13.2%₹1,346.00₹800.00n/a27
Mar ’25₹1,183.60
₹1,162.44
-1.8%
13.1%₹1,346.00₹800.00n/a27
Feb ’25₹1,229.20
₹1,135.46
-7.6%
13.0%₹1,385.00₹760.00n/a26
Jan ’25₹1,247.20
₹1,099.68
-11.8%
13.7%₹1,310.00₹760.00n/a28
Dec ’24₹1,156.80
₹1,095.75
-5.3%
13.6%₹1,310.00₹760.00n/a28
Nov ’24₹1,026.80
₹1,024.41
-0.2%
15.8%₹1,310.00₹700.00₹1,419.1527
Oct ’24₹1,092.35
₹999.08
-8.5%
14.2%₹1,190.00₹700.00₹1,529.0526
Sep ’24₹1,078.15
₹992.35
-8.0%
13.7%₹1,157.00₹700.00₹1,587.0026
Aug ’24₹933.80
₹886.44
-5.1%
13.7%₹1,050.00₹630.00₹1,716.9027
Jul ’24₹836.55
₹878.23
+5.0%
14.5%₹1,050.00₹615.00₹1,666.1026
Jun ’24₹797.10
₹878.33
+10.2%
14.2%₹1,050.00₹615.00₹1,555.1027
May ’24₹800.85
₹907.00
+13.3%
15.2%₹1,068.00₹570.00₹1,271.1527
Apr ’24₹770.10
₹925.59
+20.2%
12.8%₹1,068.00₹555.00₹1,148.9027
Mar ’24₹824.10
₹926.15
+12.4%
12.9%₹1,068.00₹555.00₹1,183.6027
Feb ’24₹866.85
₹913.04
+5.3%
13.0%₹1,050.00₹555.00₹1,229.2027
Jan ’24₹879.55
₹902.70
+2.6%
12.8%₹1,050.00₹555.00₹1,247.2027
Dec ’23₹848.45
₹890.93
+5.0%
12.7%₹1,050.00₹555.00₹1,156.8028
Nov ’23₹850.65
₹823.29
-3.2%
12.5%₹1,035.00₹555.00₹1,026.8028

Analyst Forecast: Target price is less than 20% higher than the current share price.

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