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Bharat Forge declines after brokerage downgrade

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Capital Market
Last Updated : Apr 17 2015 | 11:47 AM IST

Bharat Forge fell 4.22% to Rs 1,245 at 11:09 IST on BSE after a foreign brokerage downgraded the stock to 'underperform' from 'buy'.

Meanwhile, the BSE Sensex was down 63.50 points, or 0.22%, to 28,602.54.

On BSE, so far 43,000 shares were traded in the counter, compared with an average volume of 1.07 lakh shares in the past one quarter.

The stock hit a high of Rs 1,300 and a low of Rs 1,245 so far during the day. The stock hit a 52-week high of Rs 1,362.90 on 6 April 2015. The stock hit a 52-week low of Rs 401.25 on 5 May 2014.

The stock had underperformed the market over the past one month till 16 April 2015, rising 0.24% compared with 0.80% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 27.63% as against Sensex's 1.93% rise.

The large-cap company has an equity capital of Rs 46.56 crore. Face value per share is Rs 2.

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The brokerage said that it was negatively surprised by recent reports of a decline in heavy truck orders in North America. This will lead to slower exports of steel forgings by Bharat Forge to the US truck and machinery sector, the brokerage reasoned.

Bharat Forge's net profit surged 108.9% to Rs 196.34 crore on 41.2% growth in net sales to Rs 1142.09 crore in Q3 December 2014 over Q3 December 2013.

Bharat Forge is India's largest manufacturer and exporter of automotive components and leading chassis component manufacturer in the world.

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First Published: Apr 17 2015 | 11:02 AM IST

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