Citi cuts Bharat Forge stock target to INR880, maintains Sell

Published 09/05/2025, 06:02
Citi cuts Bharat Forge stock target to INR880, maintains Sell

On Friday, Citi analysts revised the price target for Bharat Forge (NSE:BFRG) (BHFC:IN) stock, lowering it to INR880 from the previous INR920, while sustaining a Sell rating. The adjustment follows Bharat Forge’s fourth-quarter financial year 2025 results, which surpassed analyst expectations, particularly in the area of commercial vehicle (CV) exports. Despite a strong quarter, the management expressed a cautious outlook for the export market, citing geopolitical uncertainties and concerns about US tariffs.

Bharat Forge reported a notable increase in demand within the defense sector, highlighted by securing a substantial INR34.2 billion order for Advanced Towed Artillery Gun Systems (ATAGs) during the fourth quarter of the fiscal year 2025. The aerospace segment also showed healthy growth, with new orders expected to bolster revenue. Additionally, the company’s US manufacturing operations achieved a positive EBITDA in the same quarter.

The Citi analysis acknowledges these positive developments but emphasizes the ongoing global demand uncertainties, which are further complicated by unclear US trade policies. As a result, earnings projections were reduced, reflecting a cautious stance on the international market. The analysts have also moved their valuation timeline forward to September 2026 from March 2026, while retaining their target price-to-earnings (P/E) multiple of 29 times.

The revised price target of INR880 is based on these considerations, marking a reduction from the previous target of INR920. Despite the better-than-expected results for the fourth quarter of FY25, the cautious outlook and external economic factors have led to this updated assessment of Bharat Forge’s stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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