Morgan Stanley has reaffirmed its Overweight stance on Bharat Forge’s share price, setting a target price of ₹1,366 per share, which implies a 27% upside from the current market price (CMP) of ₹1,075.60.
The brokerage highlighted that Bharat Forge’s subsidiary, Kalyani Strategic Systems Limited (KSSL), and AM General (USA) have signed a Letter of Intent (LoI) for the supply of advanced artillery cannons to the United States. This marks a historic milestone as the first-ever supply of such defense equipment from an Indian manufacturer to the US, signaling India’s growing presence in the global defense supply chain.
Morgan Stanley noted that while the immediate revenue impact on KSSL will be gradual, it will depend on the end-product sales by AM General. However, this development underscores Bharat Forge’s strong capabilities in defense manufacturing, reinforcing its position in the defense export segment.
With Bharat Forge’s share price trading at a discount to its potential, Morgan Stanley sees strong upside potential, driven by strategic defense partnerships and long-term export opportunities.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making investment decisions.
