Bullish Bet On Bharat Forge: SEBI RA Deepak Pal Sees Rally Till ₹1350
Synopsis
The analyst noted that the stock maintains bullish momentum above its 14-day EMA. A new MoU in the defense space adds to its growth story, making it an attractive candidate.
Traders can consider buying Bharat Forge near the ₹1290–₹1291 zone or on dips, with a stop-loss at ₹1175, according to SEBI-registered analyst Deepak Pal.
At the time of writing, Bharat Forge shares were trading at ₹1,301.20, up 0.1%.
He noted that the stock has the potential to move towards ₹1350 in the near term, supported by bullish momentum and favorable sectoral sentiment.
The stock is taking support around its 14-day Exponential Moving Average (EMA) at ₹1290, and the 200-day EMA is likely to act as strong support in the event of volatility-led downside pressure.
According to Pal, Bharat Forge has been trading in a strong positive trend. Despite global geopolitical tensions, particularly the ongoing Iran-Israel conflict, Bharat Forge has shown resilience, supported by India's strategic focus on strengthening its defense sector — where the company plays a key role with a strong presence.
On Tuesday, Bharat Forge Ltd signed an MoU with France's Turgis Gaillard to jointly propose the Aarok Male-class UAV for India's defense needs.
The UAV, designed for long-range surveillance and strike missions, will be locally produced by Bharat Forge.
On fundamentals, Bharat Forge’s FY25 consolidated revenue stood at ₹15,123 crore and net profit at ₹1,322 crore.
Core profit was ₹2,524 crore, with margins improving to 28.5%.
The defense order book stood at ₹9,420 crore at the end of FY25, with 70% of orders coming from defense.
Other highlights include a 30% revenue from exports, a 23% rise in ferrous casting volumes, and standalone cash of ₹2,623 crore.
Pal noted that the standalone debt/equity ratio is 0.59x and RoCE is 18%.
On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.
The stock has risen 0.1% so far in 2025.
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