This BSE100 stock has jumped 66% in one year; BofA Securities double upgrades it, raises target by 45%!

BofA upgrades Bharat Forge, Bharat Forge share price: Shares of Bharat Forge, one of the leading names in the auto component space, jumped as much as 7 per cent in the opening deals on Thursday, April 25, after BofA Securities double-upgraded the stock to buy from underperform. Moreover, the brokerage has raised the target price by an impressive 45 per cent to Rs 1,450 from Rs 1,000 earlier.

Four reasons why BofA Securities has turned super bullish on the counter:

• The brokerage notes that there is an indication of recovery in Class 8 truck volumes. The company is expected to earn around 45 per cent revenue from the US market.
• The second reason behind the brokerage's bullish stance is the bottoming out of freight costs.
• The company's defence and industrial casting businesses are expected to post strong growth.
• Lastly, the company's business model justifies its premium valuation. 

Analysts at BofA Securities said that they expect FY24–26E EBITDA to increase by 20 per cent and EPS to surge by 40 per cent CAGR.

It further added that Bharat Forge's stock's risk-reward ratio is attractive compared to its peers.

Bharat Forge Q3 Results 

The auto components major said its profit after tax (PAT) increased by 31 per cent to Rs 378 crore for the third quarter ended on December 31, 2023. The company reported a profit after tax (PAT) of Rs 289 crore in the October–December period of the last fiscal. Total revenue rose to Rs 2,263 crore as against Rs 1,952 crore logged in the year-ago period.

Bharat Forge share price target 

Shares of the company have jumped over 66 per cent in the past 12 months. In comparison, the Nifty50 index has surged 26 per cent during the period.

About Bharat Forge

Bharat Forge Limited (BFL) is the flagship company of the $3 billion Kalyani Group and a global provider of high-performance, innovative, safety, and critical components and solutions to various sectors, including automotive, railways, defence, construction and mining, aerospace, marine, and oil and gas.