Bharat Forge Limited (BHARATFORG.NS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-62.8%

₹658.28

vs ₹1,769.50 price

Levered DCF

₹445.07

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

—

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	74.15×	57.29×	56.22×	67.88×	30.16×	-219.91×	31.28×	23.08×
P/B	8.36×	5.83×	7.46×	5.35×	4.96×	5.12×	2.1×	4.43×
P/S	4.76×	3.57×	3.41×	2.78×	3.12×	4.38×	1.36×	2.35×
EV / EBITDA	29.17×	21.83×	23.36×	23.93×	19.46×	40.15×	13.21×	13.51×
Gross margin	54.9%	54.9%	51.2%	52.3%	58.0%	58.4%	55.6%	58.5%
Operating margin	11.6%	42.4%	39.3%	40.0%	43.6%	40.6%	40.6%	45.8%
Net margin	6.4%	6.2%	6.1%	4.1%	10.3%	-2.0%	4.3%	10.2%
Current ratio	1.17×	1.18×	1.08×	1.09×	1.3×	1.38×	1.33×	1.35×
Debt / equity	0.76×	0.72×	1.11×	1.09×	0.91×	0.97×	0.86×	0.75×
Interest coverage	6.05×	15.35×	12.43×	18.87×	28.41×	24.91×	27.59×	44.36×
Dividend yield	0.5%	0.8%	0.7%	0.9%	0.5%	0.0%	3.0%	1.0%
Payout ratio	35.2%	44.8%	40.0%	61.6%	15.2%	0.0%	95.3%	22.6%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.3%	10.2%	13.3%	7.9%	16.5%	-2.3%	6.7%	19.2%
Return on invested capital	7.2%	24.5%	24.7%	20.8%	26.5%	22.4%	24.5%	30.4%
Return on assets	4.9%	4.7%	4.9%	2.9%	6.9%	-1.0%	3.0%	8.9%
Free cash flow yield	0.4%	0.6%	0.3%	0.8%	-1.7%	0.4%	5.1%	-1.1%
Earnings yield	1.3%	1.7%	1.8%	1.5%	3.3%	-0.5%	3.2%	4.3%
Enterprise value	₹863.8B	₹594.3B	₹601.1B	₹426.8B	₹380.3B	₹325.7B	₹151B	₹275.6B
Net debt / EBITDA	2.13×	2.02×	2.58×	3.82×	2.77×	5.95×	3.64×	1.84×
Cash conversion cycle (days)	136	138	121	146	166	163	141	119