NSEI:BHARATFORG

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Executive Summary

Bharat Forge Limited manufactures and sells forged components in India and internationally.


Snowflake Analysis

Reasonable growth potential with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has Bharat Forge's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BHARATFORG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.2%

BHARATFORG

1.5%

IN Auto Components

1.1%

IN Market


1 Year Return

-23.3%

BHARATFORG

-12.7%

IN Auto Components

-6.0%

IN Market

Return vs Industry: BHARATFORG underperformed the Indian Auto Components industry which returned -12.7% over the past year.

Return vs Market: BHARATFORG underperformed the Indian Market which returned -6% over the past year.


Shareholder returns

BHARATFORGIndustryMarket
7 Day-1.2%1.5%1.1%
30 Day0.3%7.7%6.2%
90 Day44.4%29.3%18.2%
1 Year-22.3%-23.3%-11.2%-12.7%-4.1%-6.0%
3 Year-34.8%-36.7%-33.4%-35.3%0.2%-4.5%
5 Year-34.5%-37.3%-7.9%-11.8%24.5%14.9%

Price Volatility Vs. Market

How volatile is Bharat Forge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bharat Forge undervalued compared to its fair value and its price relative to the market?

47.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BHARATFORG (₹354.5) is trading above our estimate of fair value (₹84.55)

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


Price To Earnings Ratio

PE vs Industry: BHARATFORG is poor value based on its PE Ratio (47.2x) compared to the IN Auto Components industry average (15.2x).

PE vs Market: BHARATFORG is poor value based on its PE Ratio (47.2x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: BHARATFORG is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BHARATFORG is overvalued based on its PB Ratio (3.2x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Bharat Forge forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

45.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHARATFORG's forecast earnings growth (45.3% per year) is above the savings rate (7.2%).

Earnings vs Market: BHARATFORG's earnings (45.3% per year) are forecast to grow faster than the Indian market (18.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BHARATFORG's revenue (7.7% per year) is forecast to grow faster than the Indian market (7.3% per year).

High Growth Revenue: BHARATFORG's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHARATFORG's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Bharat Forge performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHARATFORG has high quality earnings.

Growing Profit Margin: BHARATFORG's current net profit margins (4.3%) are lower than last year (10.2%).


Past Earnings Growth Analysis

Earnings Trend: BHARATFORG's earnings have grown by 0.9% per year over the past 5 years.

Accelerating Growth: BHARATFORG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BHARATFORG had negative earnings growth (-66.1%) over the past year, making it difficult to compare to the Auto Components industry average (-29.8%).


Return on Equity

High ROE: BHARATFORG's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Bharat Forge's financial position?


Financial Position Analysis

Short Term Liabilities: BHARATFORG's short term assets (₹52.7B) exceed its short term liabilities (₹39.7B).

Long Term Liabilities: BHARATFORG's short term assets (₹52.7B) exceed its long term liabilities (₹23.4B).


Debt to Equity History and Analysis

Debt Level: BHARATFORG's debt to equity ratio (73.8%) is considered high.

Reducing Debt: BHARATFORG's debt to equity ratio has increased from 73.6% to 73.8% over the past 5 years.

Debt Coverage: BHARATFORG's debt is well covered by operating cash flow (39.2%).

Interest Coverage: BHARATFORG's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Next Steps

Dividend

What is Bharat Forge current dividend yield, its reliability and sustainability?

0.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BHARATFORG's dividend (0.99%) is higher than the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: BHARATFORG's dividend (0.99%) is low compared to the top 25% of dividend payers in the Indian market (2.73%).


Stability and Growth of Payments

Stable Dividend: BHARATFORG's dividend payments have been volatile in the past 10 years.

Growing Dividend: BHARATFORG's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (46.6%), BHARATFORG's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHARATFORG's dividends in 3 years are forecast to be well covered by earnings (28.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Baba Kalyani (71yo)

no data

Tenure

₹194,766,075

Compensation

Dr. Babasaheb Neelkanth Kalyani, also known as Baba, B.E. (Mech.) (Hons.), M.S. (MIT) has been the Managing Director of Bharat Forge Limited since 1993 and has been its Chairman of the Board since August 1 ...


CEO Compensation Analysis

Compensation vs Market: Baba's total compensation ($USD2.59M) is above average for companies of similar size in the Indian market ($USD660.35K).

Compensation vs Earnings: Baba's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Babasaheb Kalyani
Chairman & MDno data₹194.77m0.20% 324.7m
Kishore Saletore
CFO & Executive Director5.42yrs₹37.97m0.00019% 313.6k
S. Bhave
Director of HR & IRno datano datano data
Tejaswini Chaudhari
Compliance Officer & Company Secretary4yrs₹2.83mno data
V. Munje
President of Corporate & Group General Counselno datano datano data
Amit Kalyani
Deputy MD & Executive Director16.17yrs₹59.94m0.15% 248.3m
G. Agarwal
Deputy MD & Executive Director22.17yrs₹59.09m0.0010% 1.7m
B. Kalyani
Senior VP of F.M.D & Executive Director14.17yrs₹47.84m0.0014% 2.3m
Subodh Tandale
Executive Director14.17yrs₹50.32mno data
D. Moorthy
President of Corporate Affairs & Infrastuctureno datano datano data

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: BHARATFORG's management team is considered experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Babasaheb Kalyani
Chairman & MDno data₹194.77m0.20% 324.7m
Kishore Saletore
CFO & Executive Director5.42yrs₹37.97m0.00019% 313.6k
Amit Kalyani
Deputy MD & Executive Director16.17yrs₹59.94m0.15% 248.3m
G. Agarwal
Deputy MD & Executive Director22.17yrs₹59.09m0.0010% 1.7m
B. Kalyani
Senior VP of F.M.D & Executive Director14.17yrs₹47.84m0.0014% 2.3m
Subodh Tandale
Executive Director14.17yrs₹50.32mno data
Puranam Ravikumar
Independent Director11.17yrs₹1.50m0.0014% 2.3m
Shobhan Thakore
Independent Non-Executive Director34.08yrs₹1.63m0.0060% 9.9m
Prakash Bhalerao
Non Executive Director14.92yrs₹1.93mno data
Pratap Govind Pawar
Independent Director15.17yrs₹1.93mno data

14.9yrs

Average Tenure

69yo

Average Age

Experienced Board: BHARATFORG's board of directors are seasoned and experienced ( 14.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bharat Forge Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bharat Forge Limited
  • Ticker: BHARATFORG
  • Exchange: NSEI
  • Founded: 1961
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹165.043b
  • Shares outstanding: 465.50m
  • Website: https://www.bharatforge.com

Location

  • Bharat Forge Limited
  • Pune Cantonment
  • Mundhwa
  • Pune
  • Maharashtra
  • 411036
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500493BSE (Mumbai Stock Exchange)YesEquity SharesININRJul 2001
BHARATFORGNSEI (National Stock Exchange of India)YesEquity SharesININRJul 2001
BHFORBDL (Bourse de Luxembourg)GDR-REPR 1 ORD INR2 REG'SLUUSDApr 2005

Biography

Bharat Forge Limited manufactures and sells forged components in India and internationally. It operates in two segments, Forgings and Others. The company offers automotive components, including crankshafts, connecting rods, emission after treatment, fuel injection systems, chassis, and transmission and driveline; and power generation components for thermal, hydro, and wind energy. It also provides oil and gas forging products, such as subsea, surface, and drilling components; rail products comprising engine and bogie components, turbochargers, and power electronics; and marine products that include crankshafts, connecting rods, and propeller shafts. In addition, the company offers various components for the aviation sector, which comprise fan blades, compressors, turbines, aero structures, and landing gear components; construction and mining products, including tracklink, front spindles, machined crankshaft, and injector bodies; and electric power-train products, such as full powertrain solutions, systems and sub systems, and parts for powertrain. Further, it design engineering and product development solutions. The company was founded in 1961 and is headquartered in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:49
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.