Bharat Forge stock gains 4% as it readies to buy JS Auto

Shares of auto component major Bharat Forge gained 4 per cent today after the firm said it would acquire JS Autocast Foundry India. Bharat Forge shares hit an intraday high of Rs 694.3, rising 3.94 per cent on BSE.

Bharat Forge stock is trading lower than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The share has gained 9.13 per cent in one year but lost 2.89 per cent since the beginning of this year. Market cap of the firm rose to Rs 31,549 crore on BSE.

Total 0.45 lakh shares of the firm changed hands amounting to a turnover of Rs 3.10 crore on BSE. The stock hit a 52-week high of Rs 848 on November 10, 2021 and a 52-week low of Rs 556 on April 19, 2021.

The company, along with its subsidiary, BF Industrial Solutions, has entered into a definitive agreement to acquire JS Autocast Foundry India (JS Auto).

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Established in 2004, JS Auto is a leading and preferred supplier of machined ductile iron castings for wind, hydraulic, off-highway and automotive applications. Over the past five years, JS Auto sales have grown at a CAGR of 17.7 per cent.

The company clocked sales of Rs 259 crore in FY21.

"We are delighted to welcome the JS Auto team to Bharat Forge family and will look to leverage their capabilities, highly talented technical team and a strong customer connect to aggressively grow our presence in the industrial casting space," Bharat Forge Deputy Managing Director Amit Kalyani said.

JS Auto will accelerate the company's diversification journey and enable in addressing the decarbonisation opportunity, he added.

Bharat Forge said it will acquire JS Auto for an upfront consideration (based on enterprise valuation adjustments) plus fixed deferred payment at the end of the third year.