Bharat Forge’s share price experienced a substantial decline, dropping nearly 6% on Tuesday amid cautious sentiments following the company’s Q3 results. The cautious near-term outlook led to heavy selling pressure, causing the stock to plummet by as much as 5.91% to ₹1,063.40 on the BSE.
In the aftermath of the Q3 results, Bharat Forge’s stock witnessed a significant drop of over 14% on Monday, culminating in a total decline of more than 19% in just two days.
Despite reporting a robust Q3FY24 consolidated net profit of ₹254.45 crore, showcasing a remarkable 223% YoY growth, and a 15.7% increase in revenue to ₹3,922.96 crore, the company expressed concerns about the growth momentum moderating in both domestic and export markets across industries in the upcoming quarter and FY25.
Analysts, including Kotak Institutional Equities, expressed a bearish outlook on Bharat Forge’s stock due to a challenging near-term outlook and concerns about select core businesses. Kotak Institutional Equities, in particular, maintained a ‘Sell’ rating, revising the target price to ₹850 per share. Nuvama Institutional Equities also reduced its target price to ₹1,080 per share, emphasizing the challenges posed by weakening European and US economies in core segments.
In contrast, Motilal Oswal Financial Services remained optimistic, pointing out the potential growth in Bharat Forge’s core India business and the significant opportunities in the Defense and e-mobility sectors. The brokerage reiterated a ‘Buy’ call with a target price of ₹1,315 per share.
As Bharat Forge grapples with market challenges, investors are urged to carefully consider the varied perspectives from analysts before making any investment decisions in the evolving economic landscape.