Stock Review: BHARAT FORGE

Leading metal forgings company, Bharat Forge (BFL) has restructured its overseas arms. A large part of its growth in the first of half of FY11 was due to higher demand for commercial vehicles and the export market. It is trading at a higher priceearning multiple of 39 as compared to the industry average of 25, which looks expensive. However, its outlook is promising given the rebound in domestic and export demand. BFL is also aggressively focusing on increasing its revenue from non-auto segment. This will act as catalyst for further upside in the stock in the long term.