Industrial segment likely to drive growth of Bharat Forge stock

Export growth is expected to remain strong in the current financial year, given the stable truck demand from the US and EU markets

The stock of auto component major Bharat Forge was up 7.3 per cent on Friday after a strong show in the June quarter, steady demand in the auto segment and higher growth opportunities in the industrial business.

Given the cyclical recovery across businesses and ongoing de-risking of revenues, revenue growth is expected to be stable at low double digits. However, profit growth is expected to be twice that of its top line growth over the next three years.

The June quarter numbers were better than estimates with sales being led by gains on the volume as well as the realisation