Buy Bharat Forge; target of Rs 2150: ICICI Securities

Moneycontrol • 4 days ago

Original source

Key Investment Pillars

  • Recovery in Class-8 truck demand and healthy momentum in the domestic CV segment are expected to support growth.
  • Growing order book in newer verticals like defence, semicon, and aerospace will drive medium-term growth.
  • Upcoming capacity expansions, backed by order wins, will support medium-term growth.
  • Improvement in profitability of overseas subsidiaries is a key monitorable.

Thesis Validation Checklist

  • Improvement in profitability of overseas subsidiaries.
  • Timely execution of defence orders.
  • Growth in domestic CV segment.
  • Increase in order book from newer verticals. The analyst retains a buy rating with a target price of INR 2,150, citing strong growth prospects and a growing order book in newer verticals.