Shares of Bharat Forge are forging investors serious moolah. Know why

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Shares of Bharat Forge are forging investors serious moolah. Know why
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Shares of Bharat Forge Ltd. surged to their early June highs after the auto ancillary giant reported a sharp surge in first quarter earnings thanks to a jump in exports to the United States, the world's top market for automobiles.

Bharat Forge said its first quarter Net Profit rose 34 percent to 195 crore rupees compared with 145 crore rupees in the same quarter a year ago. Sales during April-June gained 14.3 percent to 1,129 crore rupees from 988 crore rupees in the year ago period. The company said its exports to the US grew 33 percent and overall shipments of auto parts were 6 percent higher over the past year.

Bharat Forge's Operating Margin rose to 30.7 percent from 29.4 percent in the comparative periods. The earning beat market's estimates on all counts.

Bharat Forge rose 3.6 percent, or 41 rupees, to 1,189 rupees, the highest since June 5th, on the National Stock Exchange, where 9.74 lakh shares were traded compared with the 5-day average of 6.4 lakhs.

Bharat Forge's market capitalisation has surged 62 percent over the past one year to 26,675 crore rupees as a nascent auto boom took root in India and exports rose.
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Image credit: Indiatimes