Bharat Forge shares surged more than 6% on Thursday morning, buoyed by a double upgrade from Bank of America (BofA) Securities.
What Happened: BofA Securities now rates the stock as a ‘buy’ with a target price of ₹1,450 per share. This target suggests an 18% potential rise from its previous close.
BofA Securities analysts believe that the downturn in the US truck market will be short and mild, and they have already factored this into the stock price. Production levels have remained stable despite market fluctuations, and freight indicators are showing signs of stabilization, the brokerage noted.
BofA also highlighted new growth opportunities for Bharat Forge, including increasing defense revenues, strong performance in passenger vehicle exports, and potential growth in industrial casting for the defense and auto component supplier.
See also: Tata Group Stock Falling After Q4, But Brokerages Raise Target Price
Bharat Forge, the flagship entity of the $3-billion Kalyani Group, recently announced the reappointment of Amit Kalyani as its vice-chairman and joint managing director for another five-year term, starting May 11, pending shareholder approval.
Amit, the son of Bharat Forge's chairman and managing director Babasaheb Kalyani, joined the company in 1999. His roles have spanned operations, manufacturing, IT, and finance. Since his appointment as executive director in May 2004, Amit Kalyani has played a crucial role in strategic acquisitions and business diversification, the company stated.
Price Action: Bharat Forge shares were trading 6.56% higher at ₹1302.35 on Thursday morning.
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