Morgan Stanley has maintained its ‘Overweight’ stance on Bharat Forge, setting a target price of ₹1,336 per share, indicating a 22.1% upside potential from the current market price of ₹1,094.20.
While Q3 EBITDA came in lower than expected, the brokerage remains optimistic about the company’s growth trajectory, citing an improving US Class 8 truck cycle and strong expansion in non-auto business verticals, including aerospace and casting.
Additionally, narrowing losses from international subsidiaries and the potential for a domestic ATAGS (Advanced Towed Artillery Gun System) order are expected to be key drivers for the stock.
Morgan Stanley notes that Bharat Forge is trading at 25x FY27 price-to-earnings (P/E) ratio, compared to its 10-year median of 29x, indicating an attractive valuation.
With multiple growth catalysts in play, the brokerage sees strong upside potential for Bharat Forge shares in the coming quarters.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.
