
Lot size : 2000 shares
Last close : Rs. 264.05
Bharat Forge, flagship company of the USD 2.4 billion Kalyani group with 12 manufacturing locations in 6 countries is one of the largest forging companies in the world ...!!! Very few people know that with clever management strategies the company has come out clean in the major economic slowdown and downturn in the automotive segment ... the worst downturn in the decade ...!!! Yes many auto ancilliaries and subsidiaries have put down the shutters but Bharat forge has chalked out ambitious expansion plans in the non automotive segment and a major foray into the power and energy sector ...!!!
We very strongly recommend you to grab this stock in the futures and hold till the stock achieves all our upper targets ...
First, on an equity base of just Rs. 44.50 crores, the company made a net profit of Rs. 103.29 crores for the year ended March 2009 ...!!!
Second, latest quarter results ended September 2009 are very heartening ... On the back of improving market conditions the standalone revenues have reached a revenue & EBIDTA to Rs. 433.6 crores & Rs. 108.4 crores. This is a sequential growth of 19.2 % and 35.3 % respectively ...!!! Remember, steel companies do not register such kind of growth margins ...!!! PAT stood at Rs. 26.8 crores and domestic revenues grew by 29.1 % ...!!!
Operating profit margin has zoomed from 18.8 in Q1 to 24.66 ... Remember it was just 19.80 for the whole of last year ...!!! Net profit margins also have gone up by 25 % from 5.02 to 6.27 ...!!! Now our intelligent analysts and fund managers say ... This is double bumper for the company ... Revenues are already registering impressive growth .. coupled with this a jump of 25 % in net profit margins will reflect great results in coming days ...!!! So friends the fund managers are buying and buying ... You too grab this great company at the opening bell ...!!!
This is not all ... revenues to exponentially increase on back of these major positive announcements and new forays by the company ....
Alstom and Bharat Forge has started construction of plant which will manufacture advanced critical and supercritical power plant equipment at Mundra, Gujarat ... this would be the largest integrated facility for turbine, generators and auxillaries manufactured in the country ...!!! A big step by the company ...!!!
Yes it has come in a big way in the nuclear power sector ... an area which shall be in limelight for decades ...!!!
This breaking news has triggered fresh buying by fund managers ...
Bharat Forge Commissions its new Fully Integrated Ring Rolling Facility at its Centre for Advanced Manufacturing, Baramati ...!!! These rings will be used by a broad spectrum of end user applications globally ... and completes the first phase of non auto foray of the company ... Ambitious expansion plans like these will take the revenues from the non auto foray from existing 21 % to 40 % in coming days ...!!! End result ... huge revenues ... higher profits ...!!!
The shareholding pattern and trend is simply mouthwatering ... just see the comparison of shareholding between the September and June quarter ...!!!

Institutions have increased their stake from 22.64 % to 29.21 % ...!!!
FIIs have increased their stake from 7.69 % to 11.73 % ...!!!
DIIs have increased their stake from 14.95 % to 17.48 % ...!!!
Yes the non institutions stake has hence been reduced from 33.39 % to 26.82 % ... A major buying interest seen by leading fund managers ...!!!

Charts indicate a big bullish breakout in charts and the stock has closed above weekly and monthly resistance levels ... Yes accumulation phase in this stock is over ... Technically, explosive rally will take the stock to Rs.271 which is to be watched initially, Crossover will take the stock to Rs.277 levels ... a major positive announcement and some great news on cards ...Soon stock will cross Rs.300 mark. So just catch it at 09:00 am ... Real jackpot at current levels ... Just do not miss this one ...!!!
Short sellers please do not touch this forging baby ... stock has the strength to explode by 5 % to 10 % in single trading session.
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