Bharat Forge, Ramkrishna Forgings Shares Surge On Robust Class 8 Truck Orders In U.S.
Orders were up 31% month-on-month and almost three times the level seen in November 2019, according to data from FTR Transport Intelligence.
The total orders in November were the third highest ever. Class 8 truck orders for the last 12 months now stand at 2.5 lakh units.
“Consumer-oriented freight remains vibrant and industrial freight is expected to improve in the coming months. Fleets are placing big orders anticipating needing more trucks throughout next year,” FTR said in a statement. “The orders should begin to wind down in the next several months as the large fleets conclude their seasonal ordering.”
“Fleets are still trying to catch-up with the jump in freight volumes resulting from the economic restart and stimulus money spent on consumer goods and food,” Don Ake, vice president for commercial vehicles at FTR, was quoted as saying in the statement. “This will only intensify if there is a second round of payouts.”
Bharat Forge told CLSA in November that the U.S. truck market recovery surprised them positively, which should lead to a strong pick-up in the next few quarters.
Shares of Bharat Forge ended 4.6% higher at Rs 539.4 apiece on Thursday and gained for the third straight session. The stock ended at the highest level since December 2018. Out of the 29 analysts that track Bharat Forge, 11 have a ‘Buy’ recommendation, 10 suggest ‘Hold’ while eight have a ‘Sell’ call. The stock is trading 11.2% higher than its 12-month Bloomberg consensus price target of Rs 478.7.
Shares of Ramkrishna Forgings ended with gains of 2.7% at Rs 472.35 and rose for the 14th straight trading session—the longest winning streak since June 2009. Out of the six analysts that track Ramkrishna Forgings, three have a ‘Buy’ recommendation, two suggest ‘Hold’ while one has a ‘Sell’ call. The stock is trading 24% higher than its 12-month Bloomberg consensus price target of Rs 358.