Bharat Forge
Market Cap
US$1.4b
Last Updated
2020/04/01 22:00 UTC
Data Sources
Company Financials +
Executive Summary
Bharat Forge Limited manufactures and sells forged components in India and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with reasonable growth potential.
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: BHFOR's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-5.6%
BHFOR
-7.0%
LU Auto Components
-5.5%
LU Market
1 Year Return
-58.6%
BHFOR
-45.3%
LU Auto Components
-44.7%
LU Market
Return vs Industry: BHFOR underperformed the Luxembourg Auto Components industry which returned -45.3% over the past year.
Return vs Market: BHFOR underperformed the Luxembourg Market which returned -44.7% over the past year.
Shareholder returns
| BHFOR | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.6% | -7.0% | -5.5% |
| 30 Day | -51.4% | -29.1% | -25.2% |
| 90 Day | -55.9% | -41.8% | -43.3% |
| 1 Year | -58.1%-58.6% | -43.3%-45.3% | -42.7%-44.7% |
| 3 Year | -62.4%-63.5% | -54.2%-58.0% | -54.8%-59.6% |
| 5 Year | -70.4%-71.7% | -48.4%-54.3% | -64.8%-70.7% |
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
No news available
Valuation
Is Bharat Forge undervalued compared to its fair value and its price relative to the market?
14.43x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BHFOR ($3.04) is trading above our estimate of fair value ($2.27)
Significantly Below Fair Value: BHFOR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BHFOR is poor value based on its PE Ratio (14.4x) compared to the Auto Components industry average (8x).
PE vs Market: BHFOR is good value based on its PE Ratio (14.4x) compared to the Luxembourg market (21.7x).
Price to Earnings Growth Ratio
PEG Ratio: BHFOR is good value based on its PEG Ratio (0.5x)
Price to Book Ratio
PB vs Industry: BHFOR is overvalued based on its PB Ratio (1.9x) compared to the XE Auto Components industry average (0.7x).
Next Steps
Future Growth
How is Bharat Forge forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
31.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BHFOR's forecast earnings growth (31.1% per year) is above the savings rate (0.7%).
Earnings vs Market: BHFOR's earnings (31.1% per year) are forecast to grow faster than the Luxembourg market (12.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BHFOR's revenue (9.5% per year) is forecast to grow faster than the Luxembourg market (3.3% per year).
High Growth Revenue: BHFOR's revenue (9.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BHFOR's Return on Equity is forecast to be low in 3 years time (15.1%).
Next Steps
Past Performance
How has Bharat Forge performed over the past 5 years?
5.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BHFOR has high quality earnings.
Growing Profit Margin: BHFOR's current net profit margins (8.3%) are lower than last year (10%).
Past Earnings Growth Analysis
Earnings Trend: BHFOR's earnings have grown by 5.8% per year over the past 5 years.
Accelerating Growth: BHFOR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BHFOR had negative earnings growth (-23.1%) over the past year, making it difficult to compare to the Auto Components industry average (-5.1%).
Return on Equity
High ROE: BHFOR's Return on Equity (13.2%) is considered low.
Next Steps
Financial Health
How is Bharat Forge's financial position?
Financial Position Analysis
Short Term Liabilities: BHFOR's short term assets (₹56.5B) exceed its short term liabilities (₹38.7B).
Long Term Liabilities: BHFOR's short term assets (₹56.5B) exceed its long term liabilities (₹22.3B).
Debt to Equity History and Analysis
Debt Level: BHFOR's debt to equity ratio (67.8%) is considered high.
Reducing Debt: BHFOR's debt to equity ratio has reduced from 77.8% to 67.8% over the past 5 years.
Debt Coverage: BHFOR's debt is well covered by operating cash flow (42.3%).
Interest Coverage: BHFOR's interest payments on its debt are well covered by EBIT (9.1x coverage).
Balance Sheet
Inventory Level: BHFOR has a high level of physical assets or inventory.
Debt Coverage by Assets: BHFOR's debt is covered by short term assets (assets are 1.5x debt).
Next Steps
Dividend
What is Bharat Forge's current dividend yield, its reliability and sustainability?
1.52%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BHFOR's dividend (1.52%) isn’t notable compared to the bottom 25% of dividend payers in the Luxembourg market (3.28%).
High Dividend: BHFOR's dividend (1.52%) is low compared to the top 25% of dividend payers in the Luxembourg market (7.74%).
Stability and Growth of Payments
Stable Dividend: BHFOR is not paying a notable dividend for the Luxembourg market, therefore no need to check if payments are stable.
Growing Dividend: BHFOR is not paying a notable dividend for the Luxembourg market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: BHFOR is not paying a notable dividend for the Luxembourg market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of BHFOR's dividend in 3 years as they are not forecast to pay a notable one for the Luxembourg market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Baba Kalyani (70yo)
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 ($USD2.55M) is above average for companies of similar size in the Luxembourg market ($USD1.42M).
Compensation vs Earnings: Baba's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | no data | ₹194.77m | 0.20% ₹2.8m | |
| CFO & Executive Director | 5.17yrs | ₹37.97m | 0.00019% ₹2.7k | |
| Director of HR & IR | no data | no data | no data | |
| Compliance Officer & Company Secretary | 3.75yrs | ₹2.83m | no data | |
| President of Corporate & Group General Counsel | no data | no data | no data | |
| Deputy MD & Executive Director | 15.92yrs | ₹59.94m | 0.15% ₹2.1m | |
| Deputy MD & Executive Director | 21.92yrs | ₹59.09m | 0.0010% ₹14.7k | |
| Senior VP of F.M.D & Executive Director | 13.92yrs | ₹47.84m | 0.0014% ₹19.2k | |
| Executive Director | 13.92yrs | ₹50.32m | no data | |
| President of Corporate Affairs & Infrastucture | no data | no data | no data |
4.7yrs
Average Tenure
56yo
Average Age
Experienced Management: BHFOR's management team is considered experienced (4.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & MD | no data | ₹194.77m | 0.20% ₹2.8m | |
| CFO & Executive Director | 5.17yrs | ₹37.97m | 0.00019% ₹2.7k | |
| Deputy MD & Executive Director | 15.92yrs | ₹59.94m | 0.15% ₹2.1m | |
| Deputy MD & Executive Director | 21.92yrs | ₹59.09m | 0.0010% ₹14.7k | |
| Senior VP of F.M.D & Executive Director | 13.92yrs | ₹47.84m | 0.0014% ₹19.2k | |
| Executive Director | 13.92yrs | ₹50.32m | no data | |
| Independent Director | 10.92yrs | ₹1.50m | 0.0014% ₹19.9k | |
| Independent Non-Executive Director | 33.83yrs | ₹1.63m | 0.0060% ₹84.4k | |
| Non Executive Director | 14.67yrs | ₹1.93m | no data | |
| Independent Director | 14.92yrs | ₹1.93m | no data |
14.7yrs
Average Tenure
68yo
Average Age
Experienced Board: BHFOR's board of directors are seasoned and experienced ( 14.7 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: BHFOR
- Exchange: BDL
- Founded: 1961
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: ₹107.089b
- Listing Market Cap: ₹1.402b
- Shares outstanding: 465.50m
- Website: https://www.bharatforge.com
Location
- Bharat Forge Limited
- Pune Cantonment
- Mundhwa
- Pune
- Maharashtra
- 411036
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500493 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jul 2001 |
| BHARATFORG | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jul 2001 |
| BHFOR | BDL (Bourse de Luxembourg) | GDR-REPR 1 ORD INR2 REG'S | LU | USD | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 22:00 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.