BHARATFORG.NS Stock Today: MoD Carbine Order Lifts Outlook – January 1
The bharat forge share price firmed near its 52‑week zone after India’s Defence Ministry signed a ₹2,770 crore CQB carbine contract with Bharat Forge and PLR Systems. At last close, BHARATFORG.NS stood at ₹1,470.40, up 1.71% day-on-day, with momentum supported by strong volumes. The order lifts order-book visibility for about five years and strengthens the Make in India defence narrative. Below, we break down contract specifics, price levels, fundamentals, and key catalysts Indian investors should track this week.
MoD carbine order: scope, timeline, impact
The Ministry of Defence signed contracts worth ₹4,666 crore, including a ₹2,770 crore deal for Close Quarter Battle carbines. Local manufacturing is central to the programme under Make in India defence policy, aiming to deepen domestic small-arms capability and cut imports. Official details confirm indigenous production and testing cycles for the platform. See the government announcement here: PIB release.
The carbine order spans 4.25 lakh units over about five years. Bharat Forge will produce 60% of the quantity, implying significant execution run-rate and improved revenue visibility. Collaboration through the PLR Systems JV is a strategic plus for design-to-delivery capability and lifecycle support. Independent coverage of the deal is available here: The Hindu report.
Price action and technical levels to watch
The bharat forge share price closed at ₹1,470.40 (+₹24.70; +1.71%). Intraday ranged between ₹1,455.00 and ₹1,490.90, keeping it around the 52‑week zone (₹1,470.60). Volumes hit 19.53 lakh versus a 9.21 lakh average, signaling strong participation. Price trades above the 50‑DMA (₹1,384.09) and 200‑DMA (₹1,242.85), reinforcing an ongoing uptrend into the new year.
RSI at 63.29 indicates bullish momentum without being overbought. MACD histogram is positive (0.42). Immediate resistance sits near the Bollinger upper band ₹1,471.24 and Keltner upper ₹1,482.57. Supports are at the middle band ₹1,420.32 and lower band ₹1,369.39. ATR of 28.44 suggests a typical daily range near 2%, useful for setting stops in volatile sessions.
Valuation, profitability, and balance-sheet check
At ₹1,470.40, the stock trades at 64.16x TTM EPS, 4.50x sales, and 7.34x book, with a 0.59% dividend yield. Earnings yield is 1.57%. These metrics imply a premium setup that requires sustained growth and flawless execution. For context, book value per share is ₹195.16, underscoring a rich multiple on tangible assets.
TTM gross margin is 54.96%, operating margin 33.83%, and net margin 7.06%. ROE stands at 12.29%, with interest coverage at 14.92, debt-to-equity at 0.71, and current ratio at 1.10. The cash conversion cycle is 140.65 days, driven by 212.85 days inventory and 74.46 days receivables, partly offset by 146.66 days payables.
What Indian investors should monitor next
Track production ramp, first-batch deliveries, and acceptance milestones under the MoD carbine contract. Watch defense order inflows and manufacturing updates from the PLR Systems JV. Near-term, monitor price reaction into the next earnings date on 12 February 2026, along with commentary on defence mix, margins, and order-book conversion.
The Make in India defence push remains a structural driver after the ₹4,666 crore signings. Watch fresh small-arms tenders, localisation targets, and any export approvals. For the bharat forge share price, follow sector newsflow, rupee trends, and risk appetite. Model baselines imply measured 12‑month prospects, making execution and policy cadence key to upside.
Final Thoughts
India’s CQB carbine award improves visibility for Bharat Forge over about five years, reinforcing domestic defence manufacturing. The bharat forge share price sits near its 52‑week zone, above key moving averages, with RSI and MACD supportive. Yet valuation is rich at 64x TTM earnings and 7.3x book, so delivery discipline matters. Our system grade is B (Score 64.67), suggesting HOLD into earnings, while tracking contract milestones, margin trajectory, and order inflows. Short term, watch ₹1,471–₹1,483 as resistance and ₹1,420/₹1,369 as support. For long-term investors, the Make in India defence cycle and PLR Systems JV execution are the key differentiators.
FAQs
The move was supported by India’s ₹2,770 crore MoD carbine contract involving Bharat Forge and PLR Systems, which boosts order-book visibility for about five years. Price also benefited from strong volumes and a close above key moving averages, keeping near the 52‑week zone and attracting momentum interest.
The CQB carbine deal is part of ₹4,666 crore signings. The carbine component is ₹2,770 crore for 4.25 lakh units. Bharat Forge will manufacture 60% of the quantity over about five years, improving defence revenue visibility and supporting the Make in India defence agenda.
Yes. The stock trades at 64.16x TTM EPS, 4.50x sales, and 7.34x book, with a 0.59% dividend yield. These levels imply high expectations and limited margin for execution slips. Investors should watch earnings growth, margin trends, and order conversion to justify the current multiples.
Immediate resistance is near ₹1,471 (Bollinger upper) and ₹1,483 (Keltner upper). Supports sit around ₹1,420 (middle band) and ₹1,369 (lower band). ATR of 28.44 indicates a typical 2% daily swing. RSI at 63 suggests bullish momentum that is not yet overbought.
Execution updates on the MoD carbine contract, progress at the PLR Systems JV, and defence order inflows are key. The next earnings date is 12 February 2026, where commentary on the defence mix, margins, and order-book conversion could guide near-term sentiment and valuation.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
