Bharat Forge's underperformance may continue as truck orders keep low

Uncertainty on revival of demand is a key overhang for the stock

Weak class-8 truck data in the US, uncertain demand outlook, and margin pressures could be headwinds for auto component major Bharat Forge. The stock has shed about 4.4 per cent since the beginning of the month and has underperformed both the peer index, BSE Auto, and the benchmark BSE Sensex over the last six months.

Disruptions in the supply chain and volatile commodity prices led to a 51 per cent year-on-year fall in class-8 truck orders in the past two months. In May, truck orders hit a seven-month low of 13,300 units, a 43 per cent decline YoY.

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