Bharat Forge is down in the red today morning. It went down almost 2.5% to Rs.514 and remains in the red. Its 52-week high and low stands at Rs.783.90 and Rs.452 respectively.
The stock is subdued after the FTR Transportation Intelligence reported that the North American Class 8 truck orders for February were down on YoY for the second consecutive months at 16,700 units, a decline of 58% which is huge.
However, on a MoM, the orders showed an increase of 7% at 15,642 units. With 15% of its revenue coming from this stream, naturally, this is not good news for Bharat Forge.
The FTR report also added, “Several OEM's are booked solid for 2019 with limited sales slots open for the remainder of the year, so orders are likely to stay in this depressed range until 2020 order boards are opened up. The weaker orders mean that backlogs will tumble for the second straight month, but they remain at historically high levels.”