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Bharat Forge shares gain 5% even after most analysts cut price targets after Q4 resultsOut of the 27 analysts that have coverage on Bharat Forge, eight of them have a 'Sell' recommendation on the stock, while seven of them have a 'Hold' rating. The remaining 12 have a 'Buy' rating on the stock.By Meghna Sen   May 9, 2025, 12:11:46 PM IST (Published)3 Min ReadShares of Bharat Forge Ltd, the auto-to-defence equipment manufacturer, gained over 5% on Friday, May 9, even after it reported a soft performance for the January–March quarter. While analysts have maintained their stance on the stock, many have lowered their price targets following the results.

The consensus target suggests a potential downside of around 18% from the current levels.

Out of the 27 analysts that have coverage on Bharat Forge, eight of them have a 'Sell' recommendation on the stock, while seven of them have a 'Hold' rating. The remaining 12 have a 'Buy' rating on the stock.

Brokerage firm ICICI Securities has retained an 'Add' recommendation on the stock, but revised its price target lower to ₹1,225 from ₹1,250 earlier.

The brokerage said Bharat Forge’s consolidated results were largely in line with expectations led by growth in its overseas subsidiaries. However, the standalone performance fell short due to weak commercial vehicle (CV) exports and uneven revenue from the defence segment.

Despite short-term concerns like a slowdown in US CV demand, ICICI Securities believes that Bharat Forge's medium-to-longer-term growth prospects remain healthy, driven by further expansion in newer verticals like defence, aerospace and casting.

The company is also looking to increase the addressable market size by expanding into newer segment like electronics. Additionally, US tariffs could open up new opportunities, thanks to its manufacturing presence in the US.

The brokerage has trimmed its FY26 and FY27 revenue estimates by 1–3% but raised margin estimates by 10–30 basis points, citing improved profitability in overseas operations.

Nuvama Institutional Equities has maintained a 'Hold' rating but lowered its price target to ₹1,230 from ₹1,250 earlier.

The brokerage said that core segments such as CVs, global construction equipment, and tractors are expected to remain weak, limiting standalone revenue and EBITDA CAGRs to 7% each over FY25–27E. It also expects the subsidiaries to remain loss-making.

Factoring in the muted core business outlook, Nuvama has trimmed FY26 and FY27 earnings per share estimates by 2% each.

JM Financial has maintained a 'Buy' rating on the stock. The brokerage has ascribed a lower price target of ₹1,250 from ₹1,350 earlier.

According to the brokerage, the company's order book for the defence segment remains strong and the management expects 15-20% revenue growth in the defence segment in FY26. Aerospace momentum also remains healthy.

However, exports are expected to remain under pressure due to weakness in global CV demand and tariff related uncertainty.

On the other hand, global broking firm CLSA has raised its price target from ₹984 to ₹990 now. The brokerage has an 'Underperform' recommendation on the counter on the back of rich valuations.

CLSA remains cautious on Bharat Forge, led by the weak domestic CV demand situation, continued weakness in export markets due to tariff uncertainty and stress in subsidiaries.

Speaking to CNBC-TV18, Bharat Forge Chairman and Managing Director Baba Kalyani said the company has ramped up its defence sales and expects the segment to scale up in the coming years. With execution of the advanced towed artillery gun systems (ATAGS) order set to begin in the next few months, he expects the vertical to grow by 15–20% in FY26.

With regard to the ongoing India-Pakistan situation, Kalyani said that there have been advisories, and their team has been called to Delhi early next week.

Bharat Forge currently has a defence order book exceeding ₹9,500 crore, which is expected to be executed over the next three to four years.

Shares of Bharat Forge are currently trading 3.86% higher at ₹1,157.05. Despite the gain, the stock has fallen over 11% so far in 2025.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsBharat Forgeearnings