Bharat Forge remains top loser

Bharat Forge is the top loser on the bourses currently, down almost 6% or by Rs.57 at Rs.966 with an intra day low at Rs.962.50.

The stock has been battered down by FIIs, post one of them publishing a cut in its target price for the stock. Bank of America Merrill Lynch has slashed the target price of the company by 16% to Rs.900.

This downgrade has been done as it expects demand to remain muted in current H1FY16, especially th domestic business. It expects exports also to show some pressure.

Bank of America Merrill Lynch has said in the report that its high performance in Q1FY16 was on account of lower commodity price, favourable currency, lag effect of lower raw material cost benefit pass through and better product mix. The FII says that Q1 was not a true reflection of its performance and feels that maintaining the high margins in current Q2 and ahead could be a challenge given the current environment.