- Bharat Forge has reported a net income of 3.9 billion rupees, which is a significant +59% growth year-on-year and surpasses the estimate of 3.81 billion rupees.
- The revenue has made an impressive increase of +17% year-on-year to reach 23.3 billion rupees, again beating the estimated 23.12 billion rupees.
- Total costs rose to 18.4 billion rupees, marking a +9.5% increase year-on-year.
- Raw material costs were reported at 9.37 billion rupees, making a +12% growth year-on-year and falling below the estimated 9.9 billion rupees.
- The expense on employee benefits is 1.5 billion rupees, indicating a +10% increment year-on-year and is just under the estimate of 1.53 billion rupees.
- Finance cost has dipped slightly by -3.6% year-on-year to 633.8 million rupees, significantly under the estimate of 752.3 million rupees.
- Other income has dropped by -2.3% year-on-year to 381.8 million rupees.
- Regarding shareholder returns, a dividend per share of 6.50 rupees has been declared.
- In somewhat negative news, the company reports a one-time loss of 133.4 million rupees in 4Q.
- Analytic verdicts show a mixed sentiment with 19 ‘buys’, 2 ‘holds’, and 8 ‘sells’.
A look at Bharat Forge Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores system have painted a positive long-term outlook for Bharat Forge, a company that manufactures steel forgings and machined components for a variety of industries. With a high Growth score of 5 out of 5, Bharat Forge seems well-positioned for future expansion and development. The Dividend score of 4 indicates a strong track record in rewarding shareholders, suggesting stability and potential income for investors. However, the Value and Resilience scores of 2 each hint at some areas where the company may have room for improvement. With an overall Momentum score of 3, Bharat Forge appears to be making steady progress but may need to focus on sustaining and accelerating this momentum to drive further success.
In summary, Bharat Forge‘s strong focus on growth, coupled with a solid dividend track record, bodes well for its future prospects. Despite facing some challenges in terms of value and resilience, the company’s diverse range of offerings to industries like automotive, railway, and oilfield position it well for continued success in the long run. By maintaining its growth trajectory and enhancing its value proposition, Bharat Forge could solidify its position as a key player in the steel forgings and machined components market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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