auto
Bharat Forge
BHARATFORG · Nifty 50
₹2,034.5
Price 2026-06-17
At a Glance
Fundamental
90/100
STRONG
Trust
95/100
Verification
Coverage
44/100
LIMITED
Quick Take
Bharat Forge scores 90/100 on fundamentals (strong). Bharat Forge: BROAD EXPANSION regime.
Fundamental Score: 90/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 11.3% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 11.27% is moderate margin-driven and stable. Net margin of 6.4% × asset turnover of 0.76x × leverage of 2.3x.
What This Means
Net margin of 6.4% means the company keeps ₹6.4 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.76x means the company efficiently uses its assets to generate revenue. Leverage of 2.3x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
54.9%
Operating
11.8%
Net
6.4%
Gross margin 54.9% → operating margin 11.8% → net margin 6.4%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.4x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 6.2x — very comfortable. Debt service is not a concern. Debt/EBITDA at 2.5x is moderate.
Free Cash Flow
MODERATEFCF margin at 2.1% — barely positive. Limited cash after capex.
Peer Comparison
Bharat Forge is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹2136 (+5%)
Trend reversal confirmation
Breaks below ₹1933 (-5%)
Further downside risk
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Special charges of ₹154K Cr. May indicate restructuring, impairment, or one-time costs.
High refinancing risk. Company needs to roll over debt frequently. Vulnerable to credit market freezes.
Working capital is consuming significant cash. Operational efficiency declining.
⚠️ 1 critical + 3 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes