Bharat Forge Limited
Bharat Forge Limited Fundamental Analysis
Bharat Forge Limited (BHARATFORG.BO) shows weak financial fundamentals with a PE ratio of 80.48, profit margin of 7.00%, and ROE of 12.88%. The company generates $161.5B in annual revenue with weak year-over-year growth of -3.57%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 33.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BHARATFORG.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBHARATFORG.BO struggles to generate sufficient returns from assets.
Valuation Score
WeakBHARATFORG.BO trades at a premium to fair value.
Growth Score
WeakBHARATFORG.BO faces weak or negative growth trends.
Financial Health Score
ExcellentBHARATFORG.BO maintains a strong and stable balance sheet.
Profitability Score
WeakBHARATFORG.BO struggles to sustain strong margins.
Key Financial Metrics
Is BHARATFORG.BO Expensive or Cheap?
P/E Ratio
BHARATFORG.BO trades at 80.48 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BHARATFORG.BO's PEG of 18.41 indicates potential overvaluation.
Price to Book
The market values Bharat Forge Limited at 9.71 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.93 times EBITDA. This signals the market has high growth expectations.
How Well Does BHARATFORG.BO Make Money?
Net Profit Margin
For every $100 in sales, Bharat Forge Limited keeps $7.00 as profit after all expenses.
Operating Margin
Core operations generate 25.39 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.88 in profit for every $100 of shareholder equity.
ROA
Bharat Forge Limited generates $5.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bharat Forge Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Bharat Forge Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
BHARATFORG.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
80.48
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
18.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.71
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.64
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.71
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.35
vs 25 benchmark
How BHARATFORG.BO Stacks Against Its Sector Peers
| Metric | BHARATFORG.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 80.48 | 24.97 | Worse (Expensive) |
| ROE | 12.88% | 1167.00% | Weak |
| Net Margin | 7.00% | 673.00% | Weak |
| Debt/Equity | 0.71 | 0.66 | Neutral |
| Current Ratio | 1.10 | 4.01 | Neutral |
| ROA | 5.45% | -8477.00% (disorted) | Weak |
BHARATFORG.BO outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bharat Forge Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
86.27%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
166.95%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
17.11%
Industry Style: Cyclical, Growth, Discretionary
High Growth