Morgan Stanley has maintained its equal-weight rating on Bharat Forge with a target price of ₹1,050 per share, stating that the company’s recent order win from the Indian Army will strengthen its defence vertical while core auto-linked businesses face continued challenges.
The brokerage noted that the Army signed a ₹2,770 crore carbine order with Bharat Forge and its partner PLR, of which Bharat Forge will supply 60%, adding to its order book of ₹10,860 crore. This win will help defence revenue contribution rise to around 18% of overall revenues by FY27.
Morgan Stanley said the strong defence order inflow reinforces Bharat Forge’s diversification strategy beyond its traditional automotive and industrial markets. However, it cautioned that weak demand in the U.S. Class 8 truck segment and ongoing tariff headwinds may continue to weigh on export-linked growth in the near term.
The brokerage expects steady execution on defence orders to partially offset softness in overseas markets and believes Bharat Forge remains well-positioned to benefit from India’s expanding defence procurement cycle.
Disclaimer: The views and recommendations above are those of Morgan Stanley. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
