Bharat Forge share price declines 5% post Q3 results 2025. Should you buy, sell or hold the stock?

Stock Market Today: Bharat Forge share price declined more than 5% in the morning trades on Thursday after the company's Q3 results that were declared after trading hours on Wednesday.

Bharat Forge share price opened at ₹1065.85 on the BSE on Thursday, more than 4% lower than the previous close of ₹1105.55. The stock thereafter declined to intraday lows of ₹1047.25, translating into intraday decline of more than 5%.

Bharat Forge Q3 Results

Bharat Forge's net profit for the quarter ended December 2024 stood at ₹346 crore, down 8.4% year-on-year (YoY) compared to ₹377.8 crore in the year-ago quarter.

The total revenue declined 7.4% YoY to ₹2,096 crore in Q3 on account of two key factors – weak demand conditions in the EU impacting exports and lower sales of defence products on a sequential & YoY basis. However, despite a lower topline, the EBITDA margin at 28.1% was sustained due to a favourable product mix in Q3FY25.

Analyst views on Bharat Forge stock post Q3

Jefferies India said Bharat Forge's Q3 EBITDA fell 7% YoY (6% sequentially) and was 12% below its estimates on a lower-than-expected standalone top line. Slowing capex momentum in India, weak macro in Europe, and sluggish US truck production are affecting Bharat Forge, as per Jefferies. Indian gun orders are still awaited and supply ramp-up is at least 15-18 months away, Jefferies added. It cut the FY25-27 estimated earnings per share by 6-14%. Despite a 38% fall from the June peak, Jefferies says that the stock is expensive at 19 times FY26 estimated EV by EBITDA and 5.2 times FY26 estimated price-to-book value.

Analysts at Motilal Oswal Financial Services (MOFSL) have cut their FY25 and FY26 earnings estimates by 25% and 17%, respectively to factor in the weak outlook in major segments (including commercial vehicles ) and a slower-than-expected defence ramp-up. They estimate a CAGR (compound annual growth rate) of 15%, 20% and 46% in consolidated revenue, EBITDA and net profit, respectively over FY25-27. The stock as per MOFSL appears fairly valued at the current valuations of 33.9 times and 25 times FY26 and FY27 estimated consolidated earnings per share. The brokerage reiterated its ‘Neutral’ rating on the stock with a target price of ₹1,155.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.