The defence industry in India is a significant contributor to the nation’s economy and stock market. The Indian
government has been increasing defence spending, potentially leading to increased demand for defence
products and services, benefiting defence companies.
Listed below is one such Defence stock in which the Government of Singapore has bought a fresh stake in
Q1FY25:
With a market capitalization of Rs. 75,314 crores, the shares of Bharat Forge Ltd started Tuesday’s trading session on a higher note at Rs. 1,630 compared to its previous close of Rs. 1,625.45. During the trading session, the shares hit a high of Rs. 1,633.45, gaining around 1 percent and are currently trading at Rs. 1,631 apiece.
Looking at the company’s financial performance, the revenue increased by around 8 percent from Rs. 3,866 crores duirng the December quarter to Rs. 4,164 crores in the March quarter. Contrastingly, the net profits decreased by around 11 percent from Rs. 254 crores to Rs. 227 crores during the same period.
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Comparing the same metrics on a YoY basis, the revenue jumped by around 15 percent from Rs. 3,629 crores duirng Q4FY23 to Rs. 4,164 crores in Q4FY24. Additionally, the net profits zoomed by 77 percent from Rs. 128 crores to Rs. 227 crores during the same period.
As of March 31, 2024, the executable order book stood at Rs 5,192 crores. The defence sector of BFL Group witnessed a significant revenue increase to Rs 1,561 crores, compared to FY23. The company secured new contracts totalling Rs 4,494 crores for artillery systems, armored vehicles, and consumables.
Moreover, at a consolidated level, the company expects FY25 to be a year of strong growth, driven by robust growth in its defence and industrial casting businesses, as well as continued improvement in its overseas operations.
Bharat Forge manufactures a diverse array of defence products, including advanced artillery systems like ATAGS, Bharat 52 ordnance, Garuda 105 ordnance, and MArG 155-BR.
They also produce armoured vehicles such as Armoured Personnel Carriers, Armoured Troop Carriers, Mine Protected Vehicles, and Light Bullet Proof Vehicles.
According to BSE data, the Government of Singapore bought a fresh stake in the company’s shares during the recent quarter by acquiring approximately 57.63 lakh equity shares equivalent to a 1.24 percent stake and the current holding value amounts to Rs. 936.9 crores.
In terms of key financial metrics, the company reported a return on equity of 13.26 percent and a return on capital employed of 19.23 percent for the period spanning FY23-24. Additionally, the net profit margin stood at 5.76 percent during the same timeframe.
Bharat Forge Ltd. is a leading Indian multinational company that specializes in the manufacturing and sale of high-performance, critical, and safety components for diverse automotive and industrial applications.
The company is involved in forging, automotive, energy, construction and mining, railways, marine, aerospace, and defence industries.
Written By Vaibhav Patil
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