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Fundamentals for Bharat Forge Limited
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Fundamentals for Bharat Forge Limited
Business Operations:
Sector: Consumer CyclicalIndustry: Auto Parts
Bharat Forge Limited engages in the manufacture and sale of forged and machined components in India and internationally. It operates through three segments: Forgings, Defence, and Others. The company offers automotive components comprising crankshafts, connecting rods, emission/after treatment, and fuel injection systems; chassis, such as front axle beams, steering knuckles, control arms, forks, and reinforcement brackets; transmission and driveline components; and power generation components for thermal, hydro, and wind energy. It 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 propellers, marine motor, stern tube, crankshaft, conrod, piston rod, and rudders. In addition, the company offers various components for the aviation sector, such as turbochargers and superchargers, fan blades, compressors, impellers, turbines, aero-frames, and landing gear and engine components; construction and mining products, including track links, front spindles, machined crankshafts, and injector bodies; and electric power-train products, such as full powertrain solutions, systems and sub systems, and parts for powertrain. Further, it designs engineering and product development solutions. The company was incorporated in 1961 and is headquartered in Pune, India.
Revenue projections:
With BHARATFORG's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.
Financial Ratios:
| currentRatio | 1.16900 |
|---|---|
| forwardPE | 39.02398 |
| debtToEquity | 76.47500 |
| earningsGrowth | -0.17900 |
| revenueGrowth | 0.17500 |
| grossMargins | 0.54855 |
| operatingMargins | 0.11553 |
| trailingEps | 22.50000 |
| forwardEps | 48.76233 |
The current ratio for Bharat Forge Limited is 1.169, indicating that the company can service its short-term debt using available cash and assets. This suggests Bharat Forge Limited has strong liquidity, with more than enough resources to meet its immediate financial commitments.
Bharat Forge Limited's low earnings and revenue growth suggest that the company may face shrinking profits. This could indicate underlying financial challenges, making it difficult for Bharat Forge Limited to sustain its current profitability.
BHARATFORG's negative gross and operating margins suggest that the company is experiencing losses at both the production and operational levels. This could point to inefficiencies or declining demand for its products.
Bharat Forge Limited's forward EPS is higher than its trailing EPS, suggesting the company is expected to see an increase in profitability this year. This points to positive growth, indicating that Bharat Forge Limited is projected to improve its financial performance compared to the previous year.
Price projections:
The price of BHARATFORG has regularly been close to the lower end of projections, suggesting that it might be struggling to meet market expectations. This trend raises questions about the company's future performance.
Recommendation changes over time:
A recent buy bias from analysts toward BHARATFORG may inspire confidence in investors, who could view the stock as a promising investment. This positive sentiment suggests that BHARATFORG might be an appealing option for those looking to grow their wealth through stock market investments.
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