Bharat Forge shares slid over 4 per cent on Wednesday after a global brokerage house CLSA downgraded the stock from ‘buy’ to ‘sell’.
The share price of the company closed 4.62 per cent down at Rs 890.10.
Shares of Bharat Forge are heading towards biggest single day fall since August 24. The share price of the company declined 5.94 per cent on the day.
According to CLSA, operational outlook has weakened significantly on a worsening industrial exports, continued decline in new truck orders in the US, and slow recovery in its domestic industrial business.
CLSA has also cut Bharat Forge’s earnings per share (EPS) target for FY16-18 by 7-26 per cent, factoring in a slower growth across businesses.
In the past one year, the share price of Bharat Forge jumped 21.20 per cent to Rs 933.25 on October 13. Sensex gained 1.75 per cent during the same period.
For the quarter ended June 2015, the company posted net profit of Rs 195.32 crore, up 34.73 per cent, against Rs 144.97 crore in the corresponding quarter a year ago.
According to Eikon data, the scrip has 24 buy, 5 hold and 3 sell ratings.
(With inputs from Reuters)