Shares of Bharat Forge are likely to stay in focus today, Thursday, December 26, following the company disclosed its intention to invest €39 million in its wholly-owned German subsidiary, Bharat Forge Global Holding GmbH (BFGH).
This development follows a recent fund infusion of $64.50 million into Bharat Forge America (BFA), another wholly-owned subsidiary.
On December 26, 2024, Bharat Forge share price traded 0.46% higher at ₹1329 on the Bombay Stock Exchange (BSE) at 9:24 AM (IST). According to BSE data, the stock recorded a total traded volume of 2,854 shares, with a turnover of ₹37.58 lakh.
Incorporated on December 15, 2003, and based in Germany, BFGH functions as Bharat Forge’s holding company for its overseas investments. From January to December 2023, BFGH recorded a turnover of €5.11 million.
According to the company’s regulatory filing, the proposed investment will qualify as a Related Party Transaction (RPT) and will be conducted on an arm’s length basis. The investment is expected to be completed by December 31, 2024.
Bharat Forge operates across diverse sectors including automotive, oil and gas, power, rail, marine, and aerospace. Despite its wide-ranging business interests, the company’s shares have underperformed the broader market in the past year. While Bharat Forge shares have delivered returns of 8% in the last 12 months, the Sensex has risen by 10% during the same period. However, in 2024 so far, the stock has provided a return of 6%.
In its Q2 FY25, Bharat Forge reported a consolidated net profit of ₹243 crore for the second quarter ending September 30, 2024, compared to Rs 215 crore in the same period last year. Revenue from operations stood at Rs 3,688 crore, slightly lower than Rs 3,774 crore reported in the corresponding quarter of the previous fiscal.
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Published on: Dec 26, 2024, 9:41 AM IST
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