Bharat Forge Share Price Plummets To Over One-Year Low As Q3 Numbers Disappoint

Bharat Forge Ltd.'s share price declined to the lowest level in over one year as the company disappointed the street with weaker than expected performance during October-December. Its third-quarter consolidated net profit fell 16.14% on the year to Rs 213 crore compared to Rs 303 crore estimated by analysts in a Bloomberg's consensus estimates.

Bharat Forge also reported 10.12% on the year decline in revenue. Its revenue for the quarter stands at Rs 3,475 crore compared to Rs 3,866 crore. Operating profit declined 10.6% year on year to Rs 624 crore from Rs 698 crore. Bharat Forge reported that its Ebitda margin fell 10 basis points to 17.95% from 18.05%.

Softness in commercial vehicle demand, lower revenue from defence, and operations weighed on Bharat Forge's third-quarter numbers. Order momentum also declined during last quarter, Emkay Global Research said in a note Thursday.

Bharat Forge share price declined 5.43% to Rs 1,044.70 apiece, the lowest level since Nov 15, 2023. It pared losses to trade at 3.57% lower at Rs 1,067.60 apiece as of 9:37 a.m., as compared to 0.27% advance in the NSE Nifty 50 index.

The stock declined for four days in a row. It fell 2.21% in 12 months. Total traded volume so far in the day stood at 12 times its 30-day average. The relative strength index was at 27.63.

Out of 25 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold,' and seven suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 20.8%