Shares of Bharat Forge fell over 4 percent after the company has given a low outlook, single-digit revenue growth for FY20. However, the auto components maker on Monday
reported a nearly threefold jump in its standalone net profit to Rs 299.5 crore for Q4 as compared to Rs 100.33 crore YoY.
Global brokerages such as Nomura, Credit Suisse, and Citi have also reduced the stock's target price for the 12-month period.
The stock fell as much as 4.4 percent to hit the day's low of Rs 463 on the BSE. At 10:05 am, the stock was trading 2.7 percent lower at Rs 471 per share as compared to a 0.34 percent (133 points) gain in the BSE Sensex at 39,486.
For FY19, the firm's consolidated net profit stood at Rs 1,032.59 crore as compared with Rs 753.97 crore a year ago, a growth of 36.95 percent, Bharat Forge said in a regulatory filing.
The company has also recommended a final dividend of 125 percent at Rs 2.5 per equity share of Rs 2 each for the financial year ended March 2019.
On the outlook, Bharat Forge chairman and managing director BN Kalyani said after a strong two-year performance, the company is starting to witness demand flatten out in exports.
Nomura maintained its 'neutral' rating on the stock and cut its target to Rs 498 from Rs 541 per share. Meanwhile, Credit Suisse, which maintains its 'outperforming' rating, also slashed its target price to Rs 560 from Rs 570 on the muted outlook.
Citi was also neutral on the stock and reduced its target price to Rs 520 from Rs 530 per share. According to the brokerage, the weak demand scenario will continue, and that reflected inventory build-up on continued liquidity crunch.
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First Published: May 21, 2019 10:21 AM IST
