Shares of this multinational forging company surged 8 per cent; do you hold it?

Products of this stock are used in automobiles, defence, oil & gas, aerospace, locomotives, marine, energy, construction, and mining sector.

The company is a leading player in the global automotive forging space, specialising in the commercial vehicle chassis and engine component segment.  

On October 6, the shares of Bharat Forge Ltd surged 8 per cent and closed at Rs 763.95. The stock opened at Rs 724 and since has made an intraday high and low of Rs 773 and Rs 724, respectively.   

Bharat Forge Ltd manufactures and sells forged and machined components for the automotive and industrial sectors. It is a leading player in the global automotive forging space, specialising in the commercial vehicle chassis and engine component segment.  

It has a diversified global customer base including the top five CV and PV manufacturers in the world. It is a major provider of crankshafts and front-axle beams to CV OEMs in India, Europe, and North America.  

The company had a very successful year in FY22, recording its highest-ever sales and net profit number. Sales and net profit for FY22 on a combined basis were Rs 10461 crore and Rs 1077 crore, respectively. The company's ROE and ROCE as of the end of the FY22 period are 15.4 per cent and 11.5 per cent, respectively. 

For the latest June quarter, on a consolidated basis, the company generated revenue of Rs 2851 crore, a YoY improvement of 35.24 per cent. However, its Q1FY23 net profit only increased slightly by 4.4 per cent and came to Rs 160 crore.  

About the shareholding pattern, 45.25 per cent of the stake is owned by the promoters, 18.82 per cent by FIIs, 24.33 per cent by DIIs, 0.16 per cent by Government, and the rest by 11.44 per cent by non-institutional investors.   

The company has a market capitalisation of Rs 35750 crore and is currently trading at a PE multiple of 28.53x. The stock has a 52-week high and low of Rs 848 and Rs 595.85, respectively.