Loading...

Bharat Forge

NSEI:BHARATFORG
Snowflake Description

Excellent balance sheet with solid track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BHARATFORG
NSEI
₹203B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

Bharat Forge Limited manufactures and sells forged components in India and internationally. The last earnings update was 37 days ago. More info.


Add to Portfolio Compare Print
BHARATFORG Share Price and Events
7 Day Returns
3.2%
NSEI:BHARATFORG
0.3%
IN Auto Components
1%
IN Market
1 Year Returns
-25.8%
NSEI:BHARATFORG
-22.3%
IN Auto Components
1%
IN Market
BHARATFORG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bharat Forge (BHARATFORG) 3.2% -7% -9.3% -25.8% 18.6% 35.2%
IN Auto Components 0.3% -4.9% -10.5% -22.3% 12.1% 53.4%
IN Market 1% -2.1% -0.7% 1% 30.4% 35.1%
1 Year Return vs Industry and Market
  • BHARATFORG underperformed the Auto Components industry which returned -22.3% over the past year.
  • BHARATFORG underperformed the Market in India which returned 1% over the past year.
Price Volatility
BHARATFORG
Industry
5yr Volatility vs Market

Value

 Is Bharat Forge undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bharat Forge to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bharat Forge.

NSEI:BHARATFORG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 24 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 18.2%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:BHARATFORG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.2
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.205 (1 + (1- 35%) (20.4%))
1.244
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.24
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.244 * 8.6%)
18.25%

Discounted Cash Flow Calculation for NSEI:BHARATFORG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Bharat Forge is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:BHARATFORG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 18.25%)
2019 6,086.67 Analyst x9 5,147.30
2020 10,385.50 Analyst x12 7,427.24
2021 11,212.67 Analyst x15 6,781.23
2022 9,294.00 Analyst x1 4,753.38
2023 8,286.30 Est @ -10.84% 3,583.93
2024 7,845.07 Est @ -5.32% 2,869.43
2025 7,730.35 Est @ -1.46% 2,391.10
2026 7,826.31 Est @ 1.24% 2,047.18
2027 8,071.58 Est @ 3.13% 1,785.49
2028 8,431.48 Est @ 4.46% 1,577.26
Present value of next 10 years cash flows ₹38,363.54
NSEI:BHARATFORG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹8,431.48 × (1 + 7.55%) ÷ (18.25% – 7.55%)
₹84,750.40
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹84,750.40 ÷ (1 + 18.25%)10
₹15,854.06
NSEI:BHARATFORG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹38,363.54 + ₹15,854.06
₹54,217.61
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹54,217.61 / 465.50
₹116.47
NSEI:BHARATFORG Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:BHARATFORG represents 0.99967x of BSE:500493
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99967x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 116.47 x 0.99967
₹116.43
Value per share (INR) From above. ₹116.43
Current discount Discount to share price of ₹448.60
= -1 x (₹448.60 - ₹116.43) / ₹116.43
-285.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bharat Forge is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bharat Forge's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bharat Forge's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:BHARATFORG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹22.17
BSE:500493 Share Price ** BSE (2019-06-26) in INR ₹448.75
India Auto Components Industry PE Ratio Median Figure of 102 Publicly-Listed Auto Components Companies 14.97x
India Market PE Ratio Median Figure of 2,825 Publicly-Listed Companies 15.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bharat Forge.

NSEI:BHARATFORG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500493 Share Price ÷ EPS (both in INR)

= 448.75 ÷ 22.17

20.24x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bharat Forge is overvalued based on earnings compared to the IN Auto Components industry average.
  • Bharat Forge is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Bharat Forge's expected growth come at a high price?
Raw Data
NSEI:BHARATFORG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.24x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts
11%per year
India Auto Components Industry PEG Ratio Median Figure of 32 Publicly-Listed Auto Components Companies 1.24x
India Market PEG Ratio Median Figure of 523 Publicly-Listed Companies 1.31x

*Line of best fit is calculated by linear regression .

NSEI:BHARATFORG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.24x ÷ 11%

1.85x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bharat Forge is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bharat Forge's assets?
Raw Data
NSEI:BHARATFORG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹115.47
BSE:500493 Share Price * BSE (2019-06-26) in INR ₹448.75
India Auto Components Industry PB Ratio Median Figure of 112 Publicly-Listed Auto Components Companies 1.63x
India Market PB Ratio Median Figure of 3,653 Publicly-Listed Companies 0.96x
NSEI:BHARATFORG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500493 Share Price ÷ Book Value per Share (both in INR)

= 448.75 ÷ 115.47

3.89x

* Primary Listing of Bharat Forge.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bharat Forge is overvalued based on assets compared to the IN Auto Components industry average.
X
Value checks
We assess Bharat Forge's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Bharat Forge has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
11%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bharat Forge expected to grow at an attractive rate?
  • Bharat Forge's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Bharat Forge's earnings growth is positive but not above the India market average.
  • Bharat Forge's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:BHARATFORG Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:BHARATFORG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 24 Analysts 11%
NSEI:BHARATFORG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 24 Analysts 5.9%
India Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 13.9%
India Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 9.2%
India Market Earnings Growth Rate Market Cap Weighted Average 16.7%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:BHARATFORG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:BHARATFORG Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 126,858 21,578 16,397 2
2021-03-31 113,813 17,292 12,986 24
2020-03-31 107,541 16,420 12,046 23
NSEI:BHARATFORG Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 101,457 10,322
2018-03-31 83,577 9,674 7,624
2017-03-31 63,961 10,517 6,915

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bharat Forge's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • Bharat Forge's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:BHARATFORG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below

All data from Bharat Forge Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BHARATFORG Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 33.78 35.21 32.35 2.00
2021-03-31 27.78 33.00 23.00 22.00
2020-03-31 25.76 29.20 22.52 22.00
NSEI:BHARATFORG Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 22.17
2018-03-31 16.38
2017-03-31 14.85

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bharat Forge is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bharat Forge's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bharat Forge has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Bharat Forge performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bharat Forge's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bharat Forge's year on year earnings growth rate has been positive over the past 5 years.
  • Bharat Forge's 1-year earnings growth exceeds its 5-year average (35.4% vs 9.9%)
  • Bharat Forge's earnings growth has exceeded the IN Auto Components industry average in the past year (35.4% vs 5.5%).
Earnings and Revenue History
Bharat Forge's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bharat Forge Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:BHARATFORG Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 101,457.33 10,321.73 12,462.98
2018-03-31 83,576.92 7,624.44 11,171.82
2017-03-31 63,961.44 6,914.99 9,555.89
2016-03-31 68,091.48 6,524.22 9,379.67
2015-03-31 76,221.99 7,665.34 9,295.89
2014-03-31 67,158.44 5,250.74 10,480.40
2013-03-31 51,665.47 3,046.63 9,104.07

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bharat Forge has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bharat Forge used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.
  • Bharat Forge has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bharat Forge's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bharat Forge has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bharat Forge's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bharat Forge's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bharat Forge is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bharat Forge's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bharat Forge's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bharat Forge Company Filings, last reported 2 months ago.

NSEI:BHARATFORG Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 54,058.92 41,416.39 11,332.50
2018-03-31 46,811.31 32,386.08 6,880.62
2017-03-31 41,264.07 31,017.73 11,592.48
2016-03-31 34,089.59 33,492.93 11,724.19
2015-03-31 34,441.63 25,305.70 11,386.39
2014-03-31 27,002.59 25,530.31 11,948.73
2013-03-31 24,206.35 26,984.62 9,427.89
  • Bharat Forge's level of debt (76.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (94.8% vs 76.6% today).
  • Debt is well covered by operating cash flow (23.4%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.9x coverage).
X
Financial health checks
We assess Bharat Forge's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bharat Forge has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.11%
Current annual income from Bharat Forge dividends. Estimated to be 1.59% next year.
If you bought ₹2,000 of Bharat Forge shares you are expected to receive ₹22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bharat Forge's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.55%).
  • Bharat Forge's dividend is below the markets top 25% of dividend payers in India (2.08%).
Upcoming dividend payment

Purchase Bharat Forge before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:BHARATFORG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 24 Analyst Estimates (S&P Global) See Below
India Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 81 Stocks 1%
India Market Average Dividend Yield Market Cap Weighted Average of 1447 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 2.1%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:BHARATFORG Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 8.31 3.00
2021-03-31 7.62 20.00
2020-03-31 6.52 20.00
NSEI:BHARATFORG Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-20 5.000 1.087
2018-11-02 5.000 0.990
2018-05-22 4.500 0.724
2017-11-08 3.500 0.482
2017-08-07 3.750 0.607
2017-05-24 3.750 0.657
2017-02-08 3.500 0.657
2016-06-17 3.750 0.870
2016-03-11 3.500 0.890
2016-02-09 3.750 0.960
2015-06-23 4.500 0.953
2015-02-02 2.750 0.451
2014-07-31 2.250 0.521
2014-02-04 2.200 0.947
2013-05-27 1.700 1.306
2013-02-25 1.750 1.572
2012-07-04 2.000 1.479
2012-05-28 2.000 1.314
2011-05-25 1.750 1.192
2011-05-24 1.750 1.133
2010-05-24 0.500 0.295
2009-07-06 0.500 0.410
2009-04-15 0.500 0.665

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Bharat Forge's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Bharat Forge's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bharat Forge afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bharat Forge has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Bharat Forge's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Baba Kalyani
COMPENSATION ₹185,924,858
AGE 69
CEO Bio

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 1997. Dr. Kalyani was a Director of SKF AB since April 28, 2011 until March 2018. He has 46 years of experience. He began his career with Bharat Forge Limited on April 1, 1972. He serves as the Chairman of the Board and Director for Kalyani Steels Ltd. and BF Utilities Ltd. He serves as Group Chairman of Kalyani Group Pvt. Ltd. He serves as Chairman of the Board at Kalyani Carpenter Special Steels Ltd. and Automotive Axles Ltd. He serves as the Chairman of the Board of a number of other companies in Kalyani Group. He served as the Chairman of the Board of Hikal Limited until August 2008. He served as the Chairman of the Board of BF Investment Ltd. until May 12, 2015. He served as the Chairman of the Board of Bosch Chassis Systems India Ltd., until July 16, 2005. He serves as a Director at Bharat Forge Hong Kong Ltd. He serves as a Director of Nandi Infrastructure Corridor Enterprises, Kalyani Carpenter Metal Centres and Merritor HVS (India). He serves as a Director of Kenersys Gmbh. He serves as a Non-Executive Director of Hikal Limited. He serves as a Non Executive Director of Kalyani Carpenter Special Steels Ltd. and Kalyani Lemmerz Ltd. and SKF USA Inc. since 2011. He served as an Outside Director of Hitachi, Ltd. since June 22, 2016 until June, 2018. He has been a Member of the Board of Directors/Trustee of UTI Trustee Company Pvt. Ltd. since January 13, 2006. He served as a Non-Executive Director of Ugar Sugar Works Ltd. from January 1986 to March 19, 2010. He is the Founding Chairman of the Governing Board of the Indian Institute of Management, Indore and Chairman of Pratham Pune Education Foundation. Dr. Kalyani served as the Chairman of American Society of Metals, Pune Chapter. He is a Member of the CII National Council. He is also a Member of the World Economic Forum, Switzerland. He is Member of various Government Committees viz. National Manufacturing Competitiveness Council, Board of Trade, Development Council for Automobiles & Allied Industries and Consultative Group of Higher & Technical Education. He serves as Director of Automotive Axles Ltd. He has represented the Confederation of Indian Industry on its various regional committees. Along with his many accomplishments, his contributions to the Indian Industry is recognized through awards that he has received from FIE Foundation in 1991. Dr. Kalyani is the recipient of the Prestigious National Press Award, 1995. He got his major achievements include Global Entrepreneur of the year’ award by JMCCI. in 2006, Ernst & Young Entrepreneur of the year - Manufacturing in 2005 and Chief Executive Officer of the Year - Business Standard in 2004. Dr. Kalyani holds a B.E. (Mech) from Birla Institute of Technology, Pilani, Rajasthan & a Master of Science from the Massachusetts Institute of Technology, USA.

CEO Compensation
  • Baba's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Baba's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Bharat Forge management team in years:

3.9
Average Tenure
58
Average Age
  • The tenure for the Bharat Forge management team is about average.
Management Team

Baba Kalyani

TITLE
Chairman & MD
COMPENSATION
₹186M
AGE
69

Kishore Saletore

TITLE
CFO & Executive Director
COMPENSATION
₹33M
AGE
52
TENURE
4.8 yrs

Tejaswini Chaudhari

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹2M
TENURE
2.9 yrs

Amit Kalyani

TITLE
Deputy MD & Executive Director
COMPENSATION
₹55M
AGE
43
TENURE
0.1 yrs

G. Agarwal

TITLE
Deputy MD & Executive Director
COMPENSATION
₹55M
AGE
67
TENURE
13.1 yrs

B. Kalyani

TITLE
Senior VP of F.M.D & Executive Director
COMPENSATION
₹40M
AGE
55

Subodh Tandale

TITLE
Executive Director
COMPENSATION
₹42M
AGE
49

D. Moorthy

TITLE
President of Corporate Affairs & Infrastucture
AGE
66

Madan Takale

TITLE
Executive VP & Director of Engineering
AGE
58

R. Bhatia

TITLE
President & CEO of Defense Products
AGE
63
Board of Directors Tenure

Average tenure and age of the Bharat Forge board of directors in years:

13.8
Average Tenure
67
Average Age
  • The average tenure for the Bharat Forge board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Baba Kalyani

TITLE
Chairman & MD
COMPENSATION
₹186M
AGE
69

Kishore Saletore

TITLE
CFO & Executive Director
COMPENSATION
₹33M
AGE
52
TENURE
4.3 yrs

Amit Kalyani

TITLE
Deputy MD & Executive Director
COMPENSATION
₹55M
AGE
43
TENURE
15.1 yrs

G. Agarwal

TITLE
Deputy MD & Executive Director
COMPENSATION
₹55M
AGE
67
TENURE
21.1 yrs

B. Kalyani

TITLE
Senior VP of F.M.D & Executive Director
COMPENSATION
₹40M
AGE
55
TENURE
13.1 yrs

Subodh Tandale

TITLE
Executive Director
COMPENSATION
₹42M
AGE
49
TENURE
13.1 yrs

Prakash Bhalerao

TITLE
Non Executive Director
COMPENSATION
₹2M
AGE
68
TENURE
13.8 yrs

Pratap Govind Pawar

TITLE
Independent Director
COMPENSATION
₹2M
AGE
73
TENURE
14.1 yrs

Shobhan Thakore

TITLE
Independent Non-Executive Director
COMPENSATION
₹2M
AGE
71
TENURE
33 yrs

Hayagreeva Puranam

TITLE
Independent Director
COMPENSATION
₹1M
AGE
67
TENURE
10.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
20. Jul 18 Buy Sundaram Trading And Investment Pvt. Ltd. Company 18. Jul 18 19. Jul 18 16,000 ₹599.09 ₹9,413,157
18. Jul 18 Buy Sundaram Trading And Investment Pvt. Ltd. Company 17. Jul 18 17. Jul 18 64,000 ₹599.71 ₹38,381,527
X
Management checks
We assess Bharat Forge's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bharat Forge has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Looking At Bharat Forge Limited (NSE:BHARATFORG) From All Angles

NSEI:BHARATFORG Income Statement, June 21st 2019 Income investors would also be happy to know that BHARATFORG is a great dividend company, with a current yield standing at 1.1%. … NSEI:BHARATFORG Historical Dividend Yield, June 21st 2019 Next Steps: For Bharat Forge, I've compiled three relevant factors you should further research: Future Outlook: What are well-informed industry analysts predicting for BHARATFORG’s future growth? … The intrinsic value infographic in our free research report helps visualize whether BHARATFORG is currently mispriced by the market.

Simply Wall St -

How Many Bharat Forge Limited (NSE:BHARATFORG) Shares Do Institutions Own?

Taking a look at our data on the ownership groups (below), it's seems that institutions own shares in the company. … Insider Ownership Of Bharat Forge The definition of an insider can differ slightly between different countries, but members of the board of directors always count. … Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Simply Wall St -

What Should We Expect From Bharat Forge Limited's (NSE:BHARATFORG) Earnings In The Years Ahead?

Bharat Forge Limited's (NSE:BHARATFORG) latest earnings update in March 2019 suggested that the company experienced a robust tailwind, leading to a double-digit earnings growth of 35%. … Below, I've laid out key growth figures on how market analysts predict Bharat Forge's earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. … See our latest analysis for Bharat Forge Market analysts' prospects for the coming year seems positive, with earnings climbing by a robust 18%.

Simply Wall St -

Why You Should Like Bharat Forge Limited’s (NSE:BHARATFORG) ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Bharat Forge: 0.21 = ₹13b ÷ (₹100b - ₹38b) (Based on the trailing twelve months to March 2018.) Therefore, Bharat Forge has an ROCE of 21%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Would Bharat Forge Limited (NSE:BHARATFORG) Be Valuable To Income Investors?

Today we'll take a closer look at Bharat Forge Limited (NSE:BHARATFORG) from a dividend investor's perspective. Owning a strong dividend company and reinvesting the dividends is widely seen as an attractive way of growing your wealth.. … On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1

Simply Wall St -

The Bharat Forge (NSE:BHARATFORG) Share Price Is Up 134% And Shareholders Are Boasting About It

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … Over half a decade, Bharat Forge managed to grow its earnings per share at 20% a year. … We know that Bharat Forge has improved its bottom line lately, but is it going to grow revenue

Simply Wall St -

How Should Investors Feel About Bharat Forge Limited's (NSE:BHARATFORG) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Baba Kalyani's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Bharat Forge Limited has a market cap of ₹248b, and is paying total annual CEO compensation of ₹186m.

Simply Wall St -

What Type Of Shareholder Owns Bharat Forge Limited's (NSE:BHARATFORG)?

The big shareholder groups in Bharat Forge Limited (NSE:BHARATFORG) have power over the company. … With a market capitalization of ₹242b, Bharat Forge is rather large. … View our latest analysis for Bharat Forge

Simply Wall St -

Bharat Forge Limited (NSE:BHARATFORG): The Yield That Matters The Most

I will take you through Bharat Forge’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … What is Bharat Forge's cash yield. … Bharat Forge’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Did Bharat Forge Limited's (NSE:BHARATFORG) Recent Earnings Growth Beat The Trend?

After reading Bharat Forge Limited's (NSE:BHARATFORG) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … Were BHARATFORG's earnings stronger than its past performances and the industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 12%, indicating the rate at which BHARATFORG is growing has slowed down.

Simply Wall St -

Company Info

Description

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

Details
Name: Bharat Forge Limited
BHARATFORG
Exchange: NSEI
Founded: 1961
₹202,981,720,643
465,501,022
Website: http://www.bharatforge.com
Address: Bharat Forge Limited
Pune Cantonment,
Mundhwa,
Pune,
Maharashtra, 411036,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500493 Equity Shares Mumbai Stock Exchange IN INR 02. Jul 2001
NSEI BHARATFORG Equity Shares National Stock Exchange of India IN INR 02. Jul 2001
BDL BHFOR GDR-REPR 1 ORD INR2 REG'S Bourse de Luxembourg LU USD 20. Apr 2005
Number of employees
Current staff
Staff numbers
0
Bharat Forge employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 12:50
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/26
Last earnings filing: 2019/05/20
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.