Bharat Forge (BHARATFORG)

FairStock Score: 38/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Speaking as a Graham-Buffett style investor, I struggle to call Bharat Forge a bargain at ₹2065. The market cap is ₹98,725 Cr, yet latest quarterly sales were ₹4,343 Cr and net profit ₹273 Cr. The stock trades at 138.87 times earnings and 10.31 times book, while book value is only ₹200.38. Graham's number, a rough intrinsic-value anchor, is ₹324.03—so the margin of safety is -489.82%. That is not a margin; it is a warning. The business has some quality: Piotroski F-Score 8/9, Altman Z-Score 4.47, promoter holding 44.07%, and 5-year revenue CAGR 21.55%. But quality has limits. ROE is 12.20%, ROCE 12.18%, debt/equity 0.76, and profit growth is -5.06% despite sales growth of 10.94%. Free cash flow is -₹168 Cr, and dividend yield is only 0.41%. The PEG ratio of 7.79 and EV/EBITDA of 168.17 show expectations are already very high. True, the 52-week range ₹1200.20–₹2295.00 shows volatility, and the FairStock Score of 38/100 is mixed. The latest quarter is not disastrous, but not enough to justify a P/E near 139. I prefer businesses that generate cash, earn high returns on capital, and sell at a discount to intrinsic value. Bharat Forge may be a cyclical auto-components stalwart with scale and a decent balance sheet, but at this price the stock offers speculation, not value. I would wait for a materially lower price or a sharp improvement in profits and free cash flow before calling it a Buffett-style investment.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer