[JMFL] Bharat Forge (BHFC IN): Analyst meet 2022: All Hands, O | DM Stocks

[JMFL] Bharat Forge (BHFC IN): Analyst meet 2022: All Hands, One Goal

We recently attended the Bharat Forge (BHFC) analyst meet at its Pune facility. The company highlighted its efforts on being future ready, showcased technologies/products from defence business, Tork Motorcycle and EV business, apart from an update on the core auto and industrial segment. Under its ‘Vision 2030’, the company targets 12-15% CAGR revenue growth, 20%+ consol. EBITDA margin and 500bps improvement in consol. ROCE over FY23-30. Overall business momentum is expected to remain strong with future growth drivers (Defence, Aerospace, Aluminium Forging, Casting and EV business) in place. The focus continues on strengthening core business by maintaining cost leadership, adding new products, increasing market share and working on future technologies/products. Maintain BUY with Dec’23 TP of INR 960 (25x forward earnings). Slowdown in global autos and weak profitability at international subs remain key risks.