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Bharat Forge, India’s leading forging and engineered parts company with thriving exports business, particularly to US for Class 8 trucks. Demand for this product has picked up and expected to remain strong due to US infra spends. The track record of the company is impressive as its has diversified away from auto to other segments in a meaningful manner. Post Covid-19 pandemic supplies to auto OEMs are picking up gradually. Oil prices rising benefit sales to that industry and Defense could be a long term value creator with government’s indigenization program. Strong management and history of re-inventing itself to enter and scale up new markets are key positives which is why we have an over weight rating. Major risk factor is slowdown in orders as the industries it supplies to are cyclical in nature – 24-08-2021 Price: 740.70 Rating: Over Weight Recommendation: Buy

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