Even though Bharat Forge s performance in the July-September quarter broadly met Street estimates and defence orders are on the rise, the subdued outlook for its global business has prompted some brokerages to adopt a cautious stance on the company.
Analysts have reduced the company s earnings per share (EPS) estimates to account for the slow recovery of its overseas subsidiaries.
Valuations are also trading at long-term averages, which could limit potential upsides.
A robust performance in the July-September quarter for Maruti Suzuki India, driven by strong volume growth during the ongoing festival season and market share gains, is expected to keep the stock of the country s largest passenger vehicle (PV) maker on an upward trajectory.
The stock has gained over 4 per cent from its lows on October 4, while the S&P BSE Sensex is down 2 per cent during this period.
Over the medium term, new launches (market share gains) and margin improvement, driven by pricing and cost savings, will be the key factors boosting revenues and profits for the market leader.