Forging Profits: How Bharat Forge Yielded 11,610% Returns

Published by Trinkerr Academy on

If you had invested ₹1 lakh in Bharat Forge in November 2001, you could have had ₹1.29 crores in profits today! This multibagger gave its investors 11,610% returns in 21 years. Here’s a sneak peek at the company.

Stock Name: Bharat Forge Ltd.

⭐ About The Company
Founded in 1961 by Nilkanthrao A. Kalyani, Bharat Forge is among the market leaders in the forging industry in India. The company was established at a time when the automotive industry was not fully developed and infrastructure was poor. It is a global supplier of mining, construction and automotive equipment.

🏭 Forging Giant
Bharat Forge has the largest single-location forging facility in the world, equipped with advanced manufacturing equipment. The company has four manufacturing facilities which are situated in Maharashtra. Using fully automated forging techniques, the company produces carefully engineered safety tools. The company also manufactures commercial and passenger vehicles in its manufacturing unit in Baramati. It has established a global presence with production facilities in USA, Germany and France.

🚢 Largest Exporter
The company is the largest Indian auto-components exporter. It caters to a variety of industries like aerospace, marine, defence, mining and energy. Clients include automobile giants like Audi and BMW.

🔮 Future Plans
Kalyani Powertrain, a subsidiary of the company which deals with electric vehicles, plans to streamline its e-mobility strategy to combat competition and meet the growing demands of consumers. This will involve entering more segments in the electric vertical, targeting a 6% market share in the two-wheeler, three-wheeler and commercial vehicle markets. ‘As we go deeper into defence, e-mobility, light-weight materials and industries beyond the existing business, the challenges will be different from what we have faced so far. It will entail creating a talent pool with completely new skill sets and intensifying research and innovation’ says current chairman Baba Kalyani.

💰 Stock Value
On November 5, 2001, the shares of the company were trading at ₹7.30, while they were priced at ₹854.9 as of November 4, 2022.


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