Jefferies has reiterated its “underperform” rating on Bharat Forge, projecting a 17.1% downside from its current market price of ₹1,327.25. The brokerage has revised its target to ₹1,100 per share, citing weaker-than-expected Q2 results and cyclical headwinds in export markets.
The company’s Q2 EBITDA was 12% below estimates, driven by underperformance in both standalone operations and subsidiaries. While Jefferies appreciates Bharat Forge’s structural initiatives, it remains cautious due to ongoing challenges in the export segment and the stock’s high valuation.
Adding to its concerns, Jefferies has cut its below-consensus FY25-27 EPS estimates by 5-16%, reflecting a tempered outlook.
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