Posted on May 9, 2025, by Niftynews
Bharat Forge Share Price gained over 5% on May 9, 2025, in an unexpected rally despite most analysts cutting their price targets following a mixed performance in the January–March quarter (Q4 FY25). While the results were largely in line with estimates at a consolidated level, weaknesses in the company’s standalone performance led to a range of revisions in outlook by top brokerage firms.
So, what’s fueling this positive momentum in Bharat Forge Share Price, and should investors consider entering or exiting now? Here’s a detailed look.
H2: Bharat Forge Share Price Reacts Positively Despite Analyst Downgrades
The rally in Bharat Forge Share Price surprised the market, especially considering the fact that 15 out of 27 analysts either maintained a ‘Hold’ or downgraded to a ‘Sell’ recommendation. Only 12 analysts continue to rate it a ‘Buy’.
Yet, the stock surged over 5% intraday and was last seen trading around ₹1,157.05 on the BSE, even as the broader market remained relatively subdued. The price gain suggests that investors are focusing more on long-term growth drivers than immediate concerns.
H2: What Q4 FY25 Results Reveal About Bharat Forge
Bharat Forge posted a mixed performance for the March quarter. According to ICICI Securities, consolidated numbers were “largely in line” with expectations, thanks to contributions from overseas subsidiaries. However, standalone results fell short, dragged by weaker-than-expected commercial vehicle (CV) exports and inconsistency in defence revenue.
Here’s a quick financial summary:
- Consolidated revenues were stable, aided by international operations.
- Standalone performance was hurt by a slump in exports and CV demand.
- Defence and aerospace segments continued to gain traction.
H2: Analyst Views and Target Price Revisions
Let’s take a closer look at how leading brokerages are responding and what it means for Bharat Forge Share Price:
ICICI Securities: ‘Add’ Rating with Trimmed Target
ICICI Securities retained an ‘Add’ rating but cut the target price from ₹1,250 to ₹1,225. While near-term challenges persist, the brokerage believes that medium- to long-term growth is intact, driven by:
- Expansion into new verticals like defence, aerospace, and castings.
- Broader market opportunities in electronics and US manufacturing, especially amid trade policy shifts.
Nuvama Institutional Equities: ‘Hold’ Rating
Nuvama downgraded earnings estimates for FY26 and FY27 by 2% each, citing weakness in core business areas like:
- Commercial vehicles
- Construction equipment
- Tractors
They also cut their price target to ₹1,230 from ₹1,250, maintaining a cautious stance on the Bharat Forge Share Price due to flat expected growth in standalone revenue and EBITDA.
JM Financial: ‘Buy’ Rating
JM Financial remained optimistic, though it lowered the price target to ₹1,250 from ₹1,350. The firm highlighted:
- Strong defence order book with 15–20% expected revenue growth in FY26
- Continued momentum in the aerospace segment
However, they noted concerns around the global export environment and CV demand.
CLSA: ‘Underperform’ Despite Small Target Increase
CLSA revised its price target slightly higher to ₹990 from ₹984 but retained an ‘Underperform’ rating due to:
- High current valuations
- Weak domestic and export demand outlook
- Loss-making subsidiaries
H3: Defence and Aerospace – Key Growth Drivers
One major reason behind the strength in Bharat Forge Share Price is its growing focus on defence and aerospace. CMD Baba Kalyani stated that the company is ramping up defence production and expects a 15–20% revenue boost in the segment for FY26.
Key highlights:
- The company’s defence order book exceeds ₹9,500 crore
- Execution of the ATAGS (Advanced Towed Artillery Gun System) is set to begin soon
- The team has been called to Delhi for strategic discussions amid current geopolitical developments
These factors suggest that while short-term earnings may be under pressure, the long-term narrative for Bharat Forge Share Price remains compelling.
H3: Global Trade and Tariffs – A Double-Edged Sword
The company’s U.S. presence could serve as a strategic advantage amid changing global trade dynamics. US tariffs on foreign goods might benefit Bharat Forge’s domestic manufacturing operations in the U.S., opening new channels of revenue.
However, at the same time, export uncertainty continues to weigh on investor sentiment. The ongoing slowdown in global CV demand is likely to linger through FY25, limiting earnings upside in the near term.
H4: Bharat Forge Share Price – What’s the Verdict?
Despite soft Q4 numbers and price target cuts from several brokerages, Bharat Forge Share Price continues to attract investor interest. The recent price jump reflects market optimism around:
- Diversification into high-growth sectors like defence and aerospace
- Strategic positioning amid global trade shifts
- Strong medium- to long-term revenue visibility
At the same time, caution is warranted due to:
- Sluggish performance in traditional auto segments
- Export headwinds and geopolitical uncertainty
- Weakness in subsidiaries impacting consolidated margins
Key Takeaways:
- Bharat Forge Share Price jumped 5% after Q4 FY25 results despite several analysts lowering price targets.
- Consolidated performance was stable, but standalone earnings disappointed.
- Defence and aerospace are emerging as major growth levers.
- Brokerages remain split: 12 ‘Buy’, 7 ‘Hold’, 8 ‘Sell’.
- Long-term outlook is positive, but near-term risks persist.
Conclusion:
If you’re a long-term investor focused on India’s defence and manufacturing transformation, Bharat Forge Share Price could offer upside potential. But for short-term traders, current valuations and export uncertainty suggest caution.
