Bharat Forge share price extends losses, drops over 19% in two days after Q3 results; Should you buy?

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₹1,063.40 apiece on the BSE. On Monday, Bharat Forge stock price plunged over 14% after the forging company reported its December quarter results. In two days, the stock has fallen over 19%.

Bharat Forge reported consolidated net profit of ₹254.45 crore in Q3FY24, a growth of 223% from ₹78.71 crore in the same period last year. The company’s revenue during the quarter ended December 2023 increased 15.7% to ₹3,922.96 crore from ₹3,389.95 crore in the year-ago quarter. “Looking ahead in the Q4 & further into FY25, we expect the growth momentum to moderate in both Domestic & Export market across industries," Bharat Forge said in a release.

Read here: Bharat Forge share price down 14% post Q3 results: Expects domestic and export markets to see growth moderation. Most analysts maintained a bearish outlook on Bharat Forge stock on muted assumptions for near-term performance. Here’s what brokerages have to say: Bharat Forge’s consolidated EBITDA (excluding forex gain) came in 4% below our estimates due to weaker-than-expected revenue print and profitability in the EU business. Near-term outlook remains challenging on account of slowdown in some of the company’s key segments, said Kotak Institutional Equities.

It expects newer businesses to drive growth over the coming years; however, it believes the stock price is not adequately factoring in EV risks on select core businesses and ramping-up delays in its newer focused business. The brokerage cut its FY2024-26 consolidated EPS estimates by 1-11% led by lower revenue growth assumptions, lower profitability assumptions for the EU business and higher finance cost assumptions, partly offset by higher EBITDA margin assumptions for the India business. Valuations remain expensive given