Bharat Forge’s share price is down over 4% to a low of Rs 1,129.85 intra-day. The share price has been in the focus on the back of key developments in both the auto as well as the defence sectors. One of the key reasons the stock is under pressure today is because it continues to be a supplier of choice across European & US OEMs. The outlook for Class 8 truck deliveries to the US is cautiously optimistic.
Bharat Forge: Class 8 truck deliveries to US steady, outlook cautious
Bharat Forge has a significant market share for Chassis & Engine components in the North American Class 8 commercial vehicle segment. As per the company’s 2024 annual report, CV business continued to hold steady, supported by a resilient Class 8 truck demand and some market share gains globally. Fleet replacement demand across key markets of US continues to be steady. However, the European M&HCV outlook remains gloomy. The US class 8 outlook remains cautiously optimistic.
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The company has signed contracts worth Rs 6,900 crore with the Ministry of Defence. The Ministry of Defence signed contracts with Bharat Forge and Tata Advanced Systems for the procurement of 155mm, 52 calibre Advanced Towed Artillery Gun Systems (ATAGS), and high‐mobility 6×6 gun towing vehicles. The Ministry for Capital Procurement has secured contracts worth Rs 1.40 lakh crore to date in the current Financial Year 2024–25 by signing this deal.
Bharat Forge develops Advanced Towed Artillery Gun Systems
In November 2024, Kalyani Group’s company entered into contract negotiations with the Ministry of Defence (MoD) to supply 307 indigenously developed Advanced Towed Artillery Gun Systems (ATAGS). It was expected that the negotiations would conclude by the end of the current fiscal year.
The agreement for 307 guns was split in a 60:40 ratio, with Bharat Forge receiving 184 guns and Tata Group 123 guns. The contracts were signed in the presence of Defence Secretary Rajesh Kumar Singh at the South Block of the Secretariat Building.
The ATAGS was indigenously designed and developed by the Armament Research and Development Establishment (ARDE) — the Pune-based laboratory of the Defence Research and Development Organisation (DRDO) — in partnership with Bharat Forge and TASL.
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