CMP: 304

Bharat Forge Limited manufactures steel forgings and machined components for the automotive, diesel engine, railway, earthmoving, cement, sugar, steel, coal, ship building and oilfield industries. The Company specializes in Closed Die as well as Open Die Forgings.

Bharat Forge is a decent bet in mid-cap space. Its currently trading at a P/E of 18 with dividend yields of over 1% in the last 12 months. It runs at a debt of 1473 Crores with almost 500 Crores Cash in hand. Debt to Profits ratio is little above 2 which is at acceptable levels. Revenues have risen from 1864 Crores to 2947 Crores in the last 5 years. Profits have dipped from 241 Crores and risen back to 311 Crores in the last 5 years. FY 2012 has looked good so far and should clock 400 Crores in profits. Buy and book profits when Nifty peaks.