Shares of this Defence company jumped up to 2 percent on Tuesday’s trading session after North America Class 8 truck orders hit the highest level in 13 months.
With a market capitalisation of Rs. 53,908 crores, the shares of Bharat Forge Ltd started Tuesday’s trading session on a higher note at Rs. 1,164 compared to its previous close at Rs. 1,157. The share hit a high of Rs. 1,185.95, gaining around 2 percent, which is also recorded as the company’s fresh 52-week high. The shares are currently trading at Rs. 1,163 apiece.
According to the reports, the Class 8 truck orders of the company increased by 32 percent from 28,00 units in October to 36,750 units in November. When compared to the same period last year, the orders increased by 3 percent from 35,649 units to 36,750 units. Since, the company has a presence in the North American Class 8 truck business, a rise in orders is well for the company’s growth prospects.
According to industry authority FTR, the rise in orders compared to the previous year indicates that the market is trying to maintain historically high-performance standards. On a monthly basis, FTR tracks class 8 truck orders for the transportation industry and reports on preliminary order numbers.
FTR chairman Eric Starks said, “Despite prolonged weakness in the overall freight market, fleets remain eager to invest in new equipment. Order levels, while above historical averages, continue to follow seasonal trends, solidifying our expectations for replacement demand in 2024.”
Coming onto the financial statements, the revenue decreased marginally by 4 percent from Rs. 3,877 crores in the June quarter to Rs. 3,774 crores during the September quarter. On a contrasting note, the net profit increased from Rs. 214 crores to Rs. 215 crores during the same timeframe.
The company is focusing on increasing the market share in traditional business sectors and executing defence orders. Furthermore, they are focusing on growing e-mobility business across components, power electronics, and repowering.
Headquartered in Pune, Bharat Forge Ltd was incorporated in 1961. The company is engaged in the manufacturing and selling of forged and machined compounds for the defence, auto and industry sectors.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
