Bharat Forge: Rising industrial segment revenue, auto recovery drive gains

Brokerages have also highlighted that the energy crisis in Europe would be a big opportunity for Indian forging and casting companies such as Bharat Forge

With a gain of over 12 per cent in the last three months, Bharat Forge has been one of the top gainers in the auto component space. Investors have brushed aside some of the recession-related worries in the US and Europe, falling oil prices, and raw material pressures on profitability.

Among key concerns for the company has been the impact of weakening of demand in the US and Europe on the heavy commercial vehicle business. The segment accounts for a quarter of Bharat Forge’s revenues. Say analysts, led by Mumuksh Mandlesha of Emkay Research: “Constrained by flat gross domestic product growth