Bharat Forge Shares: On February 20, 2025, Bharat Forge’s share price rose by 2.65%, hitting an intraday high of Rs 1,103.95 per share. This increase came after a major announcement in the defence sector.
The news that caused this rise was about Kalyani Strategic Systems (KSSL), a subsidiary of Bharat Forge, signing a Letter of Intent (LOI) with AM General, a US-based company. The agreement involves supplying advanced artillery cannons manufactured in India to the United States. This development has generated positive attention in the market, leading to the rise in Bharat Forge’s stock price.
Bharat Forge, a leading Indian company, has announced that its subsidiary, Kalyani Strategic Systems Ltd (KSSL), has signed a Letter of Intent (LOI) with AM General, a US-based company. The agreement was made at IDEX 2025 and involves supplying advanced artillery cannons made in India to the United States, reported by News18. This is the first time an Indian defence manufacturer will supply cannons to the US, showing the growing defence partnership between the two countries.
Baba Kalyani, Chairman and Managing Director of Bharat Forge, said, “Supplying made-in-India defence systems to the United States is a huge achievement! KSSL is proud to be the first Indian company to supply cannons to the US. This agreement shows our capabilities and our goal to become a global leader in artillery solutions. It also proves that global defence leaders like AM General trust us.” The partnership will also focus on developing next-generation artillery solutions, including mounted, towed, and ultra-light gun systems in 105mm and 155mm calibers.
John Chadbourne, Executive Vice President of AM General, said, “This LOI is a big step in growing our partnership. With KSSL’s expertise in artillery and our shared focus on innovation, we see great potential in providing advanced artillery solutions to the US defence forces. We are excited to work with the Kalyani Group to deliver advanced mobile artillery capabilities.”
Bharat Forge is a global leader in manufacturing advanced components for industries like automotive, aerospace, railways, marine, and energy. The company has a strong presence worldwide and works with major OEMs in the US, Europe, Japan, China, and India. Bharat Forge is also expanding into defence, aerospace, and e-mobility, aiming to become a key player in these growing sectors.
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Motilal Oswal, a brokerage firm, recently gave a neutral rating for Bharat Forge, with a share price target of Rs 1,155. The firm said Bharat Forge’s performance in Q3 FY25 was below expectations due to slow growth in key segments and a slower-than-expected increase in defence projects.
The brokerage firm said, “Demand for commercial vehicles (CVs), both in India and for exports, as well as passenger vehicle (PV) exports and domestic non-auto sectors, remains weak. Overseas subsidiaries are also taking longer to improve. The main growth drivers for Bharat Forge are likely to be defence and joint venture projects.”
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The firm added, “We have reduced our FY25 and FY26 earnings estimates by 25% and 17% due to weak outlooks in major segments, slower defence growth, and ongoing issues with overseas subsidiaries. The stock seems fairly valued at current prices.”
The brokerage also mentioned, “The Indian CV market may see slight growth in the fourth quarter, but FY26 is expected to be flat. US Class-8 CV demand is projected to grow 10% in FY26, mostly in the later part of the year. However, there is uncertainty about possible tariff changes.”
“Weak demand in the EU and the US continues due to the shift to electric vehicles (EVs) and economic uncertainty. EU operations reported INR 100 million in EBITDA, while US operations reduced losses to INR 60 million. Margins in the US have improved due to cost-cutting and efficiency measures. The company is reviewing its European manufacturing operations, with a clearer plan expected in six months,” the brokerage said.
On 10:10 AM, Bharat Forge’s share price was trading at Rs 1,074.50, down 0.08%, while the BSE Sensex was down 0.34% at 75,677.45. Bharat Forge’s market value is Rs 51,370.62 crore, and it is part of the BSE 100 index.
