Archive · 10 Dec 2025
Motilal Oswal Downgrades Bharat Forge to Neutral
Motilal Oswal, a financial brokerage, has downgraded Bharat Forge to a 'Neutral' rating.
They think the company will face several challenges in the coming quarters.
The US truck market, which is a big part of Bharat Forge's business, is not doing well, and the company's European units are struggling with high costs.
The domestic market is also uncertain.
Additionally, Bharat Forge's defence orders, while strong, will take time to turn into steady revenue.
The company's stock is currently valued high, but Motilal Oswal believes the path ahead is not smooth.
They have set a target price of Rs 1,290, which is about 5.7% lower than the current price.
Motilal Oswal downgrades Bharat Forge to 'Neutral' with a target price of Rs 1,290, implying a 5.7% downside.
US Class-8 truck market remains subdued, with no sustained recovery expected until the second half of 2026.
European units are struggling with high energy and labour costs, and restructuring is expected to take time.
Domestic commercial vehicle market shows mixed outlook, with high base and uncertain demand.
Defence order book is strong but will take time to convert into steady revenue, with key orders like ATAGS expected to start production only by FY27.
- Who
- Motilal Oswal, Bharat Forge
- What
- Downgrade to Neutral, target price cut to Rs 1,290
- When
- Current and near-term outlook
- Where
- Global markets, particularly US and Europe
- Why
- Multiple pressures including soft export demand, European unit struggles, and margin challenges
- Company
- Bharat Forge
- Brokerage
- Motilal Oswal
- New Rating
- Neutral
- Target Price
- Rs 1,290
- Potential Downside
- 5.7%
- Defence Order Book
- Rs 9,500 - 11,400 crore
- FY26 Revenue Estimate
- Rs 16,360 crore
- FY26 EBITDA Estimate
- Rs 1,760 crore
- FY26 Profit Estimate
- Rs 1,210 crore
