Global research firm CLSA has downgraded Bharat Forge to ‘sell’ from outperform, with a cut in target to Rs 420 from Rs 680. This implies a downside of 38 percent.
The stock has fallen 4 percent in the morning trade.
The brokerage believes cyclical pressures are lined up ahead and it has cut FY20-21 EPS estimates by 16-24 percent.
Further, US truck orders and Indian truck industry volumes have slipped after 2 and 5-year upcycles, it said.
It also expects a sharp correction in commodity prices to weigh on industrial exports.
The company’s North America orders have fallen 25 percent at 21,000 units against 27,900 units MoM. While its orders on YoY basis fell 44 percent.
It sees the company staring at an earnings downgrade cycle.
We provide you sure shot Commodity & Equity Market Tips, Intraday tips, share market tips, Mcx bullion tips, Mcx tips, Crude tips, Stock tips, Future and Cash tips with Technical & Fundamental Research.
Visit: www.ripplesadvisory.com
Contact us @ +91-9644405056
No comments:
Post a Comment