Bharat Forge shares volatile after Q1FY27 loss, brokerages mixed on outlook
The stock traded between ₹2,040.30 (down over 2%) and ₹2,114.90 on the NSE
Bharat Forge's shares experienced volatility on Tuesday following a reported consolidated net loss of ₹90 crore for Q1FY27, in contrast to a profit of ₹284 crore in the previous year. The stock fluctuated between ₹2,040.30 and ₹2,114.90 on the NSE, having reached a 52-week high of ₹2,295 in the preceding session. The company attributed the losses to restructuring costs at its German subsidiary.
Analysts have offered mixed ratings and outlooks on Bharat Forge. Jefferies maintained an 'accumulate' rating with a target price of ₹2,500, but reduced FY27-29 EPS estimates by 4-16 per cent due to softened margins, delayed gun order execution, and elevated capex. Morgan Stanley retained an 'overweight' rating and increased the target to ₹2,469, attributing the weak performance to temporary issues while highlighting improved defense margins and increased capex.
Nomura also retained a 'neutral' rating with a target price of ₹2,260, anticipating a revenue surge driven by the Class 8 truck upcycle, defense, and aerospace sectors. Goldman Sachs kept a 'neutral' rating with a target of ₹2,120, citing manpower shortages and the US PMT plant shutdown as profitability hindrances. Conversely, Citi maintained a 'sell' rating but raised the target to ₹1,210, citing an optimistic demand outlook.
Domestic brokerages like Motilal Oswal, CLSA, and InCred have also assigned 'hold' or 'neutral' ratings, with varying targets and expectations for incremental margin improvement and revenue growth.
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