Bharat Forge Share Price Jumps After Q4 Profit, Margin Growth

Bharat Forge Ltd.'s share price rose nearly 5% on Friday, after its net profit in the fourth quarter rose, even as revenue declined. Its operating income and margin also saw growth.

The company's revenue for the quarter stood at Rs 3,853 crore, reflecting a 7.5% decline, compared to Rs 4,164 crore in the same period last year. Despite the drop in revenue, Bharat Forge's earnings before interest, taxes, depreciation, and amortisation increased by 5.9%, reaching Rs 681 crore, up from Rs 643 crore year-on-year. The company's Ebitda margin also improved to 17.7% from 15.4% the previous year.

Net profit for the quarter saw an increase of 19.5%, amounting to Rs 282 crore, compared to Rs 236 crore in the corresponding period last year. The company's board also recommended a final dividend of Rs 6 per share.

The scrip rose as much as 4.81% to Rs 1,167 apiece. It pared gains to trade 4.59% higher at Rs 1,164 apiece, as of 10:20 a.m. This compares to a 0.94% advance in the NSE Nifty 50.

The stock has fallen 17.57% in the last 12 months. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 57.

Out of 27 analysts tracking the company, 12 maintain a 'buy' rating, seven recommend a 'hold' and eight suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 0.1%.