Bharat Forge Ltd.
ISIN: INE465A01025 • Market Cap: ₹98,725 Cr
The 5-Pillar Quality Audit for Bharat Forge Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (16.9%), Return on Capital Employed (17.3%), and equity compounding (11.3%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.72 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (3.8%) and 3Y PAT CAGR (-8.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 139.79 vs PEG of 6.08 and Dividend Yield of 0.4%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 44.1%, backed by 47.4% institutional ownership.
Key Fundamental Strengths
Deep Institutional Sponsorship (47.4%)
Mutual funds, domestic DIIs, and foreign FIIs hold 47.4%, providing strong governance scrutiny.
Consistent Market Standing (Large Cap)
Established player in the Automobile and Auto Components sector with an overall fundamental quality score of 54/100.
Areas to Watch & Potential Risks
Topline Stagnation (3Y Sales CAGR: 3.8%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Priced for Perfection (P/E: 139.79)
A steep valuation multiple of 139.79 leaves little margin for safety against quarterly earnings misses.
Quantitative Strategy Eligibility
Checking BHARATFORG against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 54/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare BHARATFORG directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Bharat Forge Ltd. (BHARATFORG)Current | 54/100 | ₹98,725 Cr | 139.79 | 17.3% | 0.72 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Bajaj Auto Ltd. (BAJAJ-AUTO) | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
Frequently Asked Questions: Bharat Forge Ltd.
Q:What is the 5-Pillar Fundamental Score for Bharat Forge Ltd. (BHARATFORG)?
Bharat Forge Ltd. has a RupeeTools Fundamental Score of 54/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (63/100), Financial Health (71/100), Growth (28/100), Valuation (18/100), and Ownership Quality (82/100).
Q:Is BHARATFORG fundamentally strong for long-term investment?
BHARATFORG currently holds a moderate quality rating of 54/100. While it operates in the Automobile and Auto Components sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does BHARATFORG pass the Coffee Can Investing filter?
Yes! BHARATFORG satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BHARATFORG compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, BHARATFORG trades at a P/E of 139.79 and generates an ROCE of 17.3%. Compare its 5-Pillar score of 54/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.