Bharat Forge Shares: In the wake of the Russo-Ukraine War, defense spending is expected to increase across the world and hence it may be a good idea to look at quality defense stocks available at attractive valuations. According to stock market experts, Bharat Forge is one such defense stock that one can expect to add to their portfolio. He said that Bharat Forge in railways, construction and mining sectors also where infrastructure is the focus of the Government of India (GoI), is expected to yield benefits in the long term.
Advising the ‘Dips on Dips’ strategy to positional investors; Sumeet Bagdia, Executive Director, Choice Broking said,Bharat Forge Looks positive on the chart. However, the stock has seen a slight jump today and hence one should wait for some profit booking and buy on the dips while maintaining the stop loss. 645. Bharat Forge share price may fall 700 more 725 in the short term.”
To suggest situational investors to hold this defense stock for long term; Avinash Gorakshakar, Head of Research, Profitmart Securities, said, “After the Russia-Ukraine crisis, a new global order is expected and defense spending is expected to increase across the world. Hence, companies like Bharat Forge are expected to benefit from this new churn. It is expected in the global order. Besides, the company also has presence in railways, construction, energy and mining sector. As the Government of India has announced to focus on infrastructure sector in its budget 2022, this company has to be considered for this. Government’s focus is also expected to benefit. However, it will take time for these developments to impact the balance sheet of the company. Hence, one should add to this stock keeping in mind the medium to long term horizon.”
According to Motilal Oswal’s report, the share price of Bharat Forge may rise 860 per level giving about 25 to 30 percent return to its shareholders in the next one year.
“Cyclical recovery in core businesses and contribution from new businesses is expected to lead to a sharp recovery for Bharat Forge (BHFC) in the next 2-3 years. This is accompanied by a pick-up in the overseas aluminum forging business. FY 22- at a consolidated EPS CAGR of 24% as compared to 25E,” said the Motilal Oswal report.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
Don’t miss a story! Stay connected and informed with Mint.
download
Our App Now!!