Bharat Forge gains 2% after defence arm bags Rs 850-crore export orders

Shares of Bharat Forge gained 2 percent on August 21 after a defence subsidiary bagged export orders worth Rs 850 crore for supply of components and armoured vehicle chassis.

“Kalyani Strategic Systems Limited, a wholly owned defence subsidiary of Bharat Forge, has bagged two export orders aggregating to €93.87 million (approximately Rs 850 crore) from friendly countries for supply of components and armoured vehicle chassis to be executed over 18 months,” the company said in an exchange filing.

At 1.40 pm, shares of the company were trading 1.2 percent higher from the previous close, at Rs 982.70 on the BSE, after touching an all-time high.

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What Kotak Institutional Equities had highlighted in its recent report was that the stock price is not adequately factoring in some risks, including the risk to the company’s export business owing to a global slowdown.

The company is placed well in the global automotive forgings industry, especially in the commercial vehicles chassis and engine component space. Favourable demand prospects and new orders, especially in the defence and aerospace sectors, are also seen aiding to the company’s revenue growth and diversification prospects, analysts believe.

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