Shares of Bharat Forge fell by 3.5% on August 5 after orders for Class-8 trucks in North America hit a 15-month low in July.
Class-8 truck orders in North America dropped 5% from the previous month, totaling 12,400 units in July. This is also an 8% decrease compared to the same time last year. It’s the second time in 2024 that these truck orders have fallen year-over-year and the fifth straight month that orders have been below 20,000 units.
Bharat Forge, which supplies components for Class-8 trucks in North America, saw its stock affected by the weak sales in this segment.
At 9:57 am, Bharat Forge shares were trading at Rs 111.30 on the NSE.
“OEMs (Original Equipment Manufacturers) faced a mixed market this month. Vocational markets underperformed slightly compared to conventional ones, but overall, the market was stable. Despite slow freight markets, fleets are still investing in new equipment, though at a slower rate,” said FTR Transport Intelligence.
“We expect further decreases in backlogs and continued growth in record-high inventory levels once the final Class-8 market indicators are released later this month. OEMs are under increasing pressure to reduce production rates,” FTR Transport added.
In June, Bharat Forge announced an additional $40 million investment in Bharat Forge America. This money will go to Bharat Forge Aluminum USA Inc. (BFAL), a subsidiary, to support capital expenditures for an aluminum forging facility.
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