&w=3840&q=100)
Bharat Forge slips 3% on cautious US export outlook; Buy, sell or hold?
At 9:25 AM, Bharat Forge's share price was down 1.95 per cent at ₹1,116.6 per share. In comparison, the BSE Sensex was 0.23 per cent lower at 80,356.31.
Bharat Forge Q1 results recap
In Q1, Bharat Forge's consolidated net profit increased 62 per cent to ₹283.87 crore, as compared to ₹174.57 crore a year ago.
The revenue from operations stood at ₹3,908.7 crore, as compared to ₹4,106.1 crore, down 4.8 per cent, due to challenges arising from the tariff policy, rollback of emission norms change for heavy trucks in US, and seasonality in the Aerospace business.
The company reported an Earnings before interest, tax, depreciation and amortisation (Ebitda) at ₹587.8 crore, as compared to ₹657.6 crore year-on-year (Y-o-Y). Ebitda margins stood at 27.9 per cent, according to the filing. Check List of Q1 results today
Bharat Forge management commentary
"Given the recent tariff announcement by the US government and changes to emission regulation in North America, we are "cautious" on the outlook for the US export business for the remainder of the fiscal," said B.N. Kalyani, chairman & managing director, Bharat Forge.
He added: FY26 is likely to be a challenging period, given where we are in the overall cycle and our geographical exposure. Our focus is on capturing opportunities in businesses and geographies which are relatively unaffected and work simultaneously on cost optimisation to minimise impact of operating deleverage.
What brokerages suggest on Bharat Forge post Q1?
Nuvama Institutional Equities has raised its target price to ₹1,280 per share from ₹1,230 with a 'Hold' rating. The brokerage believes core segments such as commercial vehicles (CVs) and global construction equipment/tractors are likely to be weak, limiting standalone revenue/Ebitda compound annual growth rate (CAGR) at 7 per cent/6 per cent over FY25–28E. Moreover, it reckons subsidiaries shall incur losses.
Conversely, global brokerage Jefferies has maintained an 'Underperform' rating on Bharat Forge with a target of ₹950 per share, according to data compiled by Bloomberg. The brokerages see Q1 as a tough quarter for Bharat Forge with weakness in the export outlook, according to reports.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
4 hours ago
- Economic Times
Tata Power bets on renewable energy to drive future growth
ET Intelligence Group: Tata Power Company (TPCL) is ramping up investments in renewables, which have emerged as a key growth driver for profit and revenue. The segment's share of operating profit rose to 26.3% in FY25 from 19.2% in FY23. In the first quarter of FY26, this segment was the largest contributor to the company's operating profit before depreciation and amortisationm, or Ebitda. Renewables clocked an Ebitda of ₹1,567 crore, while TPCL's total Ebitda was ₹3,930 crore. Other divisions, including transmission and distribution (T&D), delivered an Ebitda of ₹ 1,345 crore, while that from thermal generation, coal, and hydro segment was ₹974 crore. The company plans to add 1.7 gigawatts (GW) of renewable energy capacity by the end of the current financial year, which will take its total installed renewables capacity to approximately 6.6 GW. The total clean energy capacity- including renewable, hydro, hybrid and Waste Heat Recovery Systems-was nearly 7 GW as of June. Adani Green Energy, in comparison, had a total renewable energy capacity of 14.2 GW at the end of FY25, comprising 10.1 GW of solar, 2 GW of wind, and 2.1 GW of hybrid power. Praveer Sinha, MD and CEO, TPCL, stated during an earnings call that the company's balance sheet was sturdy in spite of a sustained capital expenditure. "We spent in the June quarter ₹3,700 crore against our full year plan of ₹25,000 crore and we are on track to implement all those projects." The company is currently executing nearly 5.5 GW of renewable energy capacity. It has 2.8 GW of pumped hydro projects in progress, with 1 GW already under construction and the remaining 1.8 GW scheduled to begin within the next nine addition, work is underway on a 600-megawatt hydro project in Bhutan with plans to scale the total capacity to nearly 5 GW over the next few years. "These projects will give us either similar or better returns than what we will do in any other project," Sinha company's net debt has risen by nearly ₹2,900 crore to ₹47,578 crore in the first quarter of the current financial year due to higher capex and working capital Financial Institutional Securities expects the company's net profit to grow by 13% annually between FY25 and FY28. The broking firm has retained a 'buy' call on the stock with a target price of ₹436. The stock was last traded at ₹384.5 on Tuesday on the BSE.
Time of India
4 hours ago
- Time of India
Tata Power bets on renewable energy to drive future growth
ET Intelligence Group: Tata Power Company (TPCL) is ramping up investments in renewables, which have emerged as a key growth driver for profit and revenue. The segment's share of operating profit rose to 26.3% in FY25 from 19.2% in FY23. In the first quarter of FY26, this segment was the largest contributor to the company's operating profit before depreciation and amortisationm, or Ebitda. Renewables clocked an Ebitda of ₹1,567 crore, while TPCL's total Ebitda was ₹3,930 crore. Other divisions, including transmission and distribution (T&D), delivered an Ebitda of ₹ 1,345 crore, while that from thermal generation, coal, and hydro segment was ₹974 crore. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program The company plans to add 1.7 gigawatts (GW) of renewable energy capacity by the end of the current financial year, which will take its total installed renewables capacity to approximately 6.6 GW. The total clean energy capacity- including renewable, hydro, hybrid and Waste Heat Recovery Systems-was nearly 7 GW as of June. Adani Green Energy , in comparison, had a total renewable energy capacity of 14.2 GW at the end of FY25, comprising 10.1 GW of solar, 2 GW of wind, and 2.1 GW of hybrid power. Praveer Sinha, MD and CEO, TPCL, stated during an earnings call that the company's balance sheet was sturdy in spite of a sustained capital expenditure. "We spent in the June quarter ₹3,700 crore against our full year plan of ₹25,000 crore and we are on track to implement all those projects." The company is currently executing nearly 5.5 GW of renewable energy capacity. It has 2.8 GW of pumped hydro projects in progress, with 1 GW already under construction and the remaining 1.8 GW scheduled to begin within the next nine months. In addition, work is underway on a 600-megawatt hydro project in Bhutan with plans to scale the total capacity to nearly 5 GW over the next few years. "These projects will give us either similar or better returns than what we will do in any other project," Sinha said. The company's net debt has risen by nearly ₹2,900 crore to ₹47,578 crore in the first quarter of the current financial year due to higher capex and working capital requirements. JM Financial Institutional Securities expects the company's net profit to grow by 13% annually between FY25 and FY28. The broking firm has retained a 'buy' call on the stock with a target price of ₹436. The stock was last traded at ₹384.5 on Tuesday on the BSE.
Time of India
4 hours ago
- Time of India
Hindalco's 30% net jump in June quarter puts Novelis revival in strong focus
The worst is over for Novelis on several fronts, said Satish Pai, managing director of Hindalco Industries . "By the second half of this year, you should start to see a very positive turn for Novelis," he said on Tuesday. Hindalco Industries, which reported consolidated earnings on Tuesday, posted a 30% rise in consolidated net profit for the June quarter at ₹4,004 crore, with consolidated revenue from operations up 13% at ₹64,232 crore. Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Novelis, the wholly-owned US-based subsidiary, saw a 36% drop in net income for the June quarter at $96 million, while adjusted EBITDA per tonne of aluminium was $432, down 18% year-on-year. Structurally higher scrap prices dented performance during the quarter, Novelis said on Monday. "Scrap spreads have started to improve, particularly in the US. So, we are now hoping that will get better in the coming quarters," Pai said on Tuesday. "The supply of scrap in the US has also gone up, so scrap spreads are no longer a headwind, but have started to become a tailwind," he told reporters after the earnings call. The September and December quarters of last fiscal marked the peak in scrap prices, Pai said, with prices now turning favourable. Live Events While the June quarter marks the "bottom" in many ways, the September quarter will be similar. "By Q3 and Q4 of this year, you are going to see a much stronger and healthier Novelis," Pai said. Earnings in the second half will reflect the impact of scrap spread mitigation, cost reduction measures and improving spreads, he added. For the upstream aluminium business in India, Hindalco's EBITDA rose 17% year-on-year to ₹4,080 crore. Upstream EBITDA per tonne stood at $1,467, up 15% from a year earlier. In the downstream aluminium business, EBITDA per tonne jumped 92% year-on-year to $264, while EBITDA hit a record ₹229 crore, up 108% year-on-year. In the copper business, EBITDA was ₹673 crore, with sharply lower TC/RCs offset by higher sulphuric acid realisations, the company said. At the consolidated level, EBITDA rose 9% year-on-year to ₹8,673 crore. Hindalco announced earnings during market hours, with its shares closing at ₹666.95 on the BSE, down 0.7% from the previous close.
