In a regulatory filing, the company informed that Kalyani Rafael Advanced Systems Private Limited, a joint venture between Kalyani Strategic Systems Limited (a wholly owned Defence subsidiary of Bharat Forge Limited) and Rafael Advanced Systems Limited of Israel, has bagged an order amounting to Rs 287.5 crore from the Ministry of Defence for the supply of Missile Systems.
The order is expected to be executed over the next 12 months.
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Bharat Forge is the flagship company of the Kalyani Group and a global provider of high performance, innovative, safety and critical components and solutions to various sectors including automotive, railways, defence, construction & aining, aerospace, marine, and oil & gas.
In the past one month, the stock has rallied 15 per cent as compared to 2.2 per cent decline in the S&P BSE Sensex. In the past six months, it has surged 30 per cent as against 10.3 per cent rise in the benchmark index.
According to analysts at Prabhudas Lilladher, defense has ramped-up and Bharat Forge sees 10 per cent of total revenues coming from Defence in FY24 (6 per cent in Q1), which would ramp up over the next few years. Aerospace is also expected to show a strong growth over the next few years. Auto segments in India and export will continue with steady performance and Bharat Forge has good visibility over the next 12 months.
The brokerage firm said it remains positive on Bharat Forge given multiple growth drivers in domestic and export automotive segment (upcycle in CV industry & easing chip shortage helping PVs), strong order book leading to a strong growth in high margin non-auto segment, contribution from defense & renewable segment, and rising traction in E-mobility division.