Bharat Forge: Diversification, lower input costs should reap benefits

Bharat Forge is the largest exporter in forgings components globally, with around 60 global customers and about 68 per cent of its revenue from exports

The tide may be turning for Bharat Forge after three years of pain, when it was hit by weak demand and high prices of its raw material. The company has spent that period figuring out diverse opportunities in new sectors such as defence, aerospace, electrical, e-mobility etc.

Now, things are set to change due to recovery in economic activity leading to demand revival, and a drop or stabilisation in raw material cost which could mean likely improvement in margins. At a recent analyst meet, the company has stated targets of 12-15 per cent compounded annual growth rate (CAGR) in revenue