Bharat Forge, one of the leading auto component manufacturers and also part of the BSE 100 Index, has recently announced an interim dividend for FY25.
As per the regulatory filing, the company on February 13 said, “the Board of Directors of the Company in their meeting held on Wednesday, February 12, 2025, have declared Interim Dividend of Rs. 2.50/- per equity share of Rs. 2/- each (i.e. 125%) for the Financial Year 2024-25.”
The company announced this interim dividend of Rs 2.50 per equity share, which is 125% of the face value of Rs 2 per share, despite clocking a decline in its third quarter financial earnings ending December 31, 2024.
Bharat Forge dividend: Key dates to remember
The company has set February 18, as the ex-dividend date. Moreover, this will also be the record date for the interim dividend, after which shareholders on the company’s books will be eligible to receive the payout.
Looking at the historical timeframe, the company has consistently rewarded its investors with regular dividend payouts.
Some of the recent dividends announced by the company include a final dividend of Rs 6.50 per share on July 5, 2024, and an interim dividend of Rs 2.50 per share on February 23, 2024.
In addition to this, the company declared a final dividend of Rs 5.50 per share on July 7, 2023. In 2022, it announced two dividends- an interim dividend of Rs 1.50 per share on November 24 and a final dividend of Rs 5.50 per share on July 14.
According to JM Financial, “BHFC is looking to significantly increase the addressable market size by expanding its product portfolio and into the non-automotive segment. And, the company is exploring inorganic opportunities in this space. We re-initiate coverage on BHFC with BUY rating and Mar’26 TP of 1,350 (31x FY27e EPS). Slowdown in global business and delay in defence order execution remain key risks.”
On the other hand, the brokerage firm Nomura in its report added, “We lower our target EV/EBITDA multiple to 15x FY27F EBITDA (18x previously), which is near the mid-historical trading band of BHFC to factor in a weaker demand outlook and unpredictability of the US tariff impact. With ATAGs guns revenue flow expected in FY27F, there is a lack of catalysts in the near term. Restructuring of EU manufacturing footprint could be positive. BHFC trades at ~14.x FY27F EV/EBITDA, which we believe is in the fair value zone. Hence, we maintain our Neutral rating.”
Bharat Forge Q3FY25 performance
Bharat Forge on February 12 announced its Q3FY25 result and posted a 16.38% drop in consolidated net profit, with earnings falling to Rs 212.78 crore from Rs 254.45 crore in the same period last year.
The company’s revenue from operations also declined to Rs 3,475.55 crore, compared to Rs 3,866.4 crore in the previous fiscal’s third quarter. Despite the dip in earnings, total expenses saw a reduction, coming in at Rs 3,165.37 crore against Rs 3,529 crore in the year ago period.
Bharat Forge stock performance
With a market capitalisation of Rs 51,710 crore, Bharat Forge’s share price has seen a downward trend in recent times. Over the past five days, the share price declined by nearly 4%, while in the last month, it dropped by around 11%.
Taking a broader view, the stock has fallen by 32% over the past six months and over the year the decline stands at 4%.