Bharat Forge Limited

NSEI:BHARATFORG Stock Report

Market Cap: ₹612.6b

Bharat Forge Valuation

Is BHARATFORG 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 BHARATFORG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BHARATFORG (₹1316.15) is trading above our estimate of fair value (₹679.98)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BHARATFORG. This is calculated by dividing BHARATFORG's market cap by their current earnings.
What is BHARATFORG's PE Ratio?
PE Ratio64.7x
Earnings₹9.47b
Market Cap₹612.62b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BHARATFORG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average70.6x
532539 Uno Minda
66.1x20.7%₹612.6b
TIINDIA Tube Investments of India
111.7x17.1%₹672.0b
SONACOMS Sona BLW Precision Forgings
75.1x25.1%₹426.1b
517334 Samvardhana Motherson International
29.5x21.2%₹1.1t
BHARATFORG Bharat Forge
64.7x28.1%₹612.6b

Price-To-Earnings vs Peers: BHARATFORG is good value based on its Price-To-Earnings Ratio (64.7x) compared to the peer average (70.6x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
513262 Steel Strips Wheels
4.8x-31.3%US$379.76m
INNOVATIVE Innovative Tyres & Tubes
0.3xn/aUS$1.22m
505100 India Radiators
0.8xn/aUS$94.64k
523415 Coventry Coil-O-Matic (Haryana)
0.9xn/aUS$88.40k
No more companies available in this PE range
BHARATFORG 64.7xIndustry Avg. 30.8xNo. of Companies17PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BHARATFORG is expensive based on its Price-To-Earnings Ratio (64.7x) compared to the Indian Auto Components industry average (30.8x).

Price to Earnings Ratio vs Fair Ratio

What is BHARATFORG'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.

BHARATFORG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio64.7x
Fair PE Ratio43.5x

Price-To-Earnings vs Fair Ratio: BHARATFORG is expensive based on its Price-To-Earnings Ratio (64.7x) 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 BHARATFORG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,316.15
₹1,460.00
+10.9%
17.3%₹1,859.00₹920.00n/a26
Nov ’25₹1,418.65
₹1,555.08
+9.6%
18.5%₹2,000.00₹950.00n/a26
Oct ’25₹1,530.20
₹1,545.89
+1.0%
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₹1,717.55
₹1,410.52
-17.9%
18.2%₹2,000.00₹850.00n/a27
Jul ’25₹1,665.95
₹1,364.59
-18.1%
16.5%₹1,650.00₹850.00n/a27
Jun ’25₹1,554.55
₹1,350.50
-13.1%
15.9%₹1,650.00₹850.00n/a28
May ’25₹1,271.20
₹1,180.22
-7.2%
13.5%₹1,450.00₹800.00n/a27
Apr ’25₹1,148.60
₹1,163.93
+1.3%
13.2%₹1,346.00₹800.00n/a27
Mar ’25₹1,184.25
₹1,162.44
-1.8%
13.1%₹1,346.00₹800.00n/a27
Feb ’25₹1,229.55
₹1,135.46
-7.7%
13.0%₹1,385.00₹760.00n/a26
Jan ’25₹1,247.50
₹1,099.68
-11.8%
13.7%₹1,310.00₹760.00n/a28
Dec ’24₹1,156.50
₹1,095.75
-5.3%
13.6%₹1,310.00₹760.00n/a28
Nov ’24₹1,027.25
₹1,024.41
-0.3%
15.8%₹1,310.00₹700.00₹1,418.6527
Oct ’24₹1,091.60
₹999.08
-8.5%
14.2%₹1,190.00₹700.00₹1,530.2026
Sep ’24₹1,078.80
₹992.35
-8.0%
13.7%₹1,157.00₹700.00₹1,587.0026
Aug ’24₹933.55
₹886.44
-5.0%
13.7%₹1,050.00₹630.00₹1,717.5527
Jul ’24₹836.80
₹878.23
+5.0%
14.5%₹1,050.00₹615.00₹1,665.9526
Jun ’24₹797.05
₹878.33
+10.2%
14.2%₹1,050.00₹615.00₹1,554.5527
May ’24₹801.35
₹907.00
+13.2%
15.2%₹1,068.00₹570.00₹1,271.2027
Apr ’24₹770.45
₹925.59
+20.1%
12.8%₹1,068.00₹555.00₹1,148.6027
Mar ’24₹824.05
₹926.15
+12.4%
12.9%₹1,068.00₹555.00₹1,184.2527
Feb ’24₹868.15
₹913.04
+5.2%
13.0%₹1,050.00₹555.00₹1,229.5527
Jan ’24₹879.85
₹902.70
+2.6%
12.8%₹1,050.00₹555.00₹1,247.5027
Dec ’23₹848.75
₹890.93
+5.0%
12.7%₹1,050.00₹555.00₹1,156.5028
Nov ’23₹850.70
₹823.29
-3.2%
12.5%₹1,035.00₹555.00₹1,027.2528

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

Discover undervalued companies

Subros

₹39.6b

Engages in the manufacture and sale of thermal products for automotive applications in India.

517168

₹606.80

7D

-0.9%

1Y

41.1%

Samkrg Pistons and Rings

₹1.8b

Manufactures and supplies automotive components in India.

520075

₹180.95

7D

0.8%

1Y

22.8%

Shivam Autotech

₹4.6b

Manufactures and sells auto transmission components for original equipment manufacturers in India and internationally.

SHIVAMAUTO

₹37.57

7D

5.9%

1Y

27.1%