Bharat Forge shares remain under brokerage radar after a mixed set of views emerged from leading analysts. While Avendus has reiterated its positive stance on the counter, Citi has maintained a cautious outlook citing macro headwinds and stretched valuations.
Avendus on Bharat Forge share: Maintains ‘add’ on stable margins and defence boost
Avendus has maintained an ‘Add’ rating on Bharat Forge with a target price of ₹1,180, reflecting optimism on medium-term operating performance. The brokerage expects standalone margins to remain stable at around 28% through FY27E, backed by robust execution and overseas margin gains led by better capacity utilisation.
The firm is forecasting a 9% revenue CAGR and 12% EBITDA CAGR over FY25–27. It sees a strong order book in defence—estimated at ₹9,500 crore as of June 2025—as a key tailwind for future growth.
However, Avendus also flagged potential challenges, including the restructuring of European operations to fix underperformance, and near-term uncertainties surrounding the US tariff policy, which could weigh on global auto demand.
Citi on Bharat Forge share: Maintains ‘sell’ as regulatory risks and valuation limit upside
In contrast, Citi has reiterated a ‘Sell’ call on Bharat Forge with a target price of ₹870. The brokerage noted that Q1FY26 results were marginally above expectations, aided by slightly higher revenue and a lower tax rate. However, Citi warned that the uncertainty around US tariffs would likely continue to impact the business in Q2 as well.
While the management expects business momentum to improve in the second half of FY26—driven by defence execution and seasonal tailwinds in the aerospace segment—Citi remains wary of the persistent global regulatory risks and geopolitical volatility.
The brokerage highlighted that the current valuations, at 42x/35x FY26/27 estimated P/E, leave little room for disappointment, making the risk-reward profile unattractive at current levels.
Disclaimer: The views and investment suggestions expressed by brokerages are their own and not those of this publication. Investors are advised to consult certified financial experts before making any investment decisions.
