Nomura has maintained its “Neutral” rating on Bharat Forge with a target price of Rs 1,789, suggesting a potential upside of 10.8% from the current market price of Rs 1,614.00. The firm highlighted that the defense segment’s share could rise to 25% by FY30, with defense and industrial sectors expected to cushion the impact of a cyclical slowdown in the global commercial vehicle (CV) market.
Upside risks include additional defense export orders and growing traction in aerospace and non-auto segments, while downside risks involve a steeper decline in global CVs and slower margin expansion in its global operations.
