Bharat Forge ends 3% lower; logs fifth straight session of losses, volume drops sharply

Bharat Forge Ltd shares tumbled 3.04 per cent to Rs 1,319.2 on the NSE by the afternoon session on November 13, extending its losing streak to a fifth consecutive trading day. The stock has underperformed recently, slipping 11.5 per cent over the last month as the broader Nifty Auto index also faced a sharp correction, down 14.1 per cent during the same period.

In comparison, Bharat Forge posted a robust 24.2 per cent rally over the past year, outpacing the Nifty's 20.3 per cent gain but trailing behind the Nifty Auto index, which surged 36.6 per cent in the same timeframe. The Nifty Auto index slid 2.3 per cent today, weighed down by weak performances from key players.

Trading volumes in Bharat Forge were muted, with around 3.8 lakh shares exchanged—significantly below the one-month daily average of 8.7 lakh shares. The November futures contract for Bharat Forge was trading at Rs 1,324.9, down 2.4 per cent.

On the earnings front, Bharat Forge posted a strong set of numbers for Q2FY25. Consolidated revenue rose 7.5 per cent year-on-year to Rs 4,058 crore, while EBITDA jumped 18.2 per cent to Rs 734 crore. The company reported a 53 per cent surge in profit after tax (PAT) to Rs 329 crore, driven by improved margins at 18 per cent, up from 16.5 per cent a year earlier.

The stock’s price-to-earnings (PE) ratio stands at 42.3 based on trailing twelve-month (TTM) earnings ending June 2024. With the recent slide, market sentiment remains cautious amid broader weakness in the auto sector and concerns over stretched valuations.