Bharat Forge - 50% Fib Level, Bullish Divergence

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Does anyone know the financials of tork motors? I tried to find but couldn’t get more info, their official site has only marketing info…

Bharat Forge to cut down on capex but increase investment in EV companies

Bharat Forge, the country’s largest forging company, will reduce capital expenditure (capex) in India this year, and will instead focus on sweating its assets and make select investments in electric technology companies

There is also an additional investment of 55 million euros (Rs 430 crore) for a new aluminum forging plant in the eastern part of Germany.

“We are going to set up aluminum forging plant in the US also, location is yet to be finalised because we are looking at all the options where we can get the best overall deal, but that we will announce by October, November of this year”, added Kalyani.

“We have made so far 10 million pounds in Tevva and about Rs 30 crore in Tork Motorcycles. We may have to put in maybe somewhere in the region of between 3 million pounds and 5 million pounds in Tevva going forward”, added Kalyani.

From technical levels this is looking very interesting at 400 which is 50% fib level. Last time when it corrected 50% fib it went up more than twice.

Any significant new defense orders for bharat forge can lead to a huge re-rating for this company.

https://www.pennews.net/amp/story/uttar-pradesh%2F2020%2F02%2F04%2Fbharat-forge-to-sign-4-mous-during-defexpo-2020

http://www.indiandefencereview.com/news/kalyani-group-to-showcase-an-array-of-indigenous-product-portfolio-at-defexpo/

With government restricting the import of Defence items and focusing on Indian products, Bharat forge is in a sweet spot and is ready for the opportunity.

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Conference call takeaways
 Outlook is positive with signs of improvement in CV export market especially US.
 Company doesn’t see any significant business in O&G, would see material reduction
YoY; fracking rigs are down to 150 from a peak of 900
 Company is witnessing improved potential and performance in renewables for both
domestic and export markets
 There’s some delay in defense business on account of covid, should resume soon
 Expect continued growth in PV (domestic and export), substantial growth in FY22/23
 Currently supplying products to Wind energy and Marine segment with revenue of Rs
500mn, could triple in one year
 Full year capex to be Rs 4.5bn
 Debt position is stable with long term debt, working capital debt and cash of Rs 23bn, Rs
13bn and Rs 24bn respectively
 Looking at inorganic opportunity beyond metal forging but where can we use our
expertise or with customer complementality

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The firm has been continuously guiding for lower Capex, however, Capex remains elevated even though revenue growth is muted/degrowth (for whatever reason).
So the question remains whether the Capex’s are for growth or pure maintainence Capex and should be discounted for as cost of business. (I’m talking about it at a consolidated level because in my opinion a standalone analysis is not justified as half the revenues are from subsidiaries/JVs/Associates).

I like what the firm is doing in terms of trying various sectors out. However, the question remains whether the free cash flow is justifying these valuations?

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Tork Motors has set Jan 26th as the release date for it’s T6X aka Kratos electric bike at an estimated price of 1.5L, with Bharat Forge having 60.66% stake in Tork motors this release is worth tracking.

DRDO chief says ATAGs final trials to start soon:
https://idrw.org/india-has-advanced-towed-artillery-gun-system-drdo/

Does it helps Bharat Forge, Please comment.

Disclaimer: not invested yet.

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Pune-based Bharat Forge Limited announced on November 9 that it has won a $155.50mn export order for one of its 155mm artillery gun platform to be executed in three years.

“We are pleased to inform that Kalyani Strategic Systems Limited, a wholly owned subsidiary of the Company, has been awarded an export order for a 155mm Artillery Gun platform to be executed over a 3-year time frame. The total value of the order is $155.50 Mln,” the company informed the Bombay Stock Exchange (BSE) in a notification.


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Army to get more M4 armoured vehicles, with Spike missiles

“This order, to a non-conflict zone, is a great testament to the Government of India’s AatmaNirbhar Bharat agenda and its sustained push to promote exports of Indigenously Designed Developed and Manufactured (IDDM) advanced defence platforms from India,” the statement added.

Bharat Forge which has diversified heavily into defence manufacturing in the last few years, has developed a range of products including a range of artillery guns. While it has sold 60 of its Kalyani-M4 armoured vehicles to the Indian Army with 30 more on order, it is yet to get a domestic order for its artillery guns.

At the recent DefExpo in Gujarat, there was lot of interest in the artillery guns from South East Asia and Africa. Company officials said at the Expo that they have secured export orders for the Kalyani-M4 vehicles.
Pune-based Bharat Forge Limited announced on November 9 that it has won a $155.50mn export order for one of its 155mm artillery gun platform to be executed in three years.

“We are pleased to inform that Kalyani Strategic Systems Limited, a wholly owned subsidiary of the Company, has been awarded an export order for a 155mm Artillery Gun platform to be executed over a 3-year time frame. The total value of the order is $155.50 Mln,” the company informed the Bombay Stock Exchange (BSE) in a notification.

Army to get more M4 armoured vehicles, with Spike missiles
](Army to get more M4 armoured vehicles, with Spike missiles - The Hindu)

“This order, to a non-conflict zone, is a great testament to the Government of India’s AatmaNirbhar Bharat agenda and its sustained push to promote exports of Indigenously Designed Developed and Manufactured (IDDM) advanced defence platforms from India,” the statement added.

Bharat Forge which has diversified heavily into defence manufacturing in the last few years, has developed a range of products including a range of artillery guns. While it has sold 60 of its Kalyani-M4 armoured vehicles to the Indian Army with 30 more on order, it is yet to get a domestic order for its artillery guns.

At the recent DefExpo in Gujarat, there was lot of interest in the artillery guns from South East Asia and Africa. Company officials said at the Expo that they have secured export orders for the Kalyani-M4 vehicles.
In February 2021, Bharat Forge announced that it has received an order from Defence Ministry under emergency procurement worth ₹117.95 crore to supply its Kalyani M4 mine protection vehicles to the Army. The deal was for 27 vehicles according to Army sources. The Army has since placed further orders for these vehicles.

Aerospace Business. A leading supplier of various components for the aviation sector.

The Aerospace business unit is a leading supplier of various components - airframe, structural and engine parts for the aviation sector. We are known to be one of the best aircraft compressor manufacturer in India.

Over the years, Bharat Forge continues to invest in state-of-the-art facilities harbouring world-class products, facilities and capabilities which has not only made the Company a renowned aircraft compressor and turbine manufacturer India, but also one of the best aircraft fan blade manufacturer in India.

BFL manufactures airframes, structural and engine parts for aeroplanes of various makes and models. As an aircraft turbine and compressor manufacturer India, the Company manufactures high end shafts, LPC Discs and HP Discs for airlines. Aero engine components - Blisk Blades, OGV Blades and Fan Blades manufactured by us are made in keeping with the latest technology and design trends while maintaining high quality standards. This has made us a renowned aircraft fan blade manufacturer in the aviation sector in India.

roducts

Explore all Aerospace Products

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](Bharat Forge - Aircraft Compressor, Turbine Manufacturer in India)

Disclaimer: I have a small investment in it.

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