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Will Bharat Forge sustain premium valuation?

Will Bharat Forge sustain premium valuation?
Will Bharat Forge sustain premium valuation?
The company believes that the cost cutting measures undertaken in the June quarter to reduce the impact of falling volumes may sustain.

Synopsis

According to the Bloomberg data, orders for the class 8 trucks in the US rose by 20% in June to 15,626 marking it to be the first month of growth in twenty months.

ET Intelligence Group: Despite the first ever quarterly net loss in the last decade, Bharat Forge has been trading on bourses at peak valuation following an early recovery in the major vertical of heavy trucks demand in the US and a boost to the defence segment given the government’s thrust on domestic manufacturing. The company’s enterprise value (EV) is 23 times the FY22 projected operating profit before depreciation (EBITDA), a 40% premium to
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