Hold Bharat Forge, target of Rs 198: Reliance Money
June 11th, 2009
Reliance Money has recommended a hold rating on Bharat Forge with a target price of Rs 198 in its June 11, 2009 research report.
“Severe drop of volume 61% y-o-y impacted Bharat Forge Ltd (BFL)’s results for Q4FY09. The sales volume levels came down even on quarterly basis as well. But on a positive side, the domestic market has shown initial signs of improvements, but global auto market continued to remain weak during FY09. BFL may need to raise funds to repay its FCCB and it may increase D/E ratio in near future. We believe earnings for FY10E and FY11E are likely to improve, but will offer little upside to the stock. We recommend a ‘HOLD’ with a target price of Rs 198,” says Reliance Money’s research report.