Bharat Forge Jumps Up to 2.4% as Chairman Baba Kalyani Announces Big Foray into Semiconductors

Mumbai, June 10: Bharat Forge share price rose as much as 2.4% on Wednesday after chairman Baba Kalyani outlined the company’s ambitions in the semiconductor industry, highlighting collaborations with three of the world’s top five chipmakers. 

The stock attracted buying interest after Kalyani said the company has entered the semiconductor ecosystem and is positioning itself to capitalize on growing opportunities in the global chip supply chain. Investors welcomed the development as a potential new growth avenue beyond Bharat Forge’s traditional businesses spanning automotive components, defence and industrial engineering. As of writing, the stock was up 1.4% at Rs 1,952. 

Working With Global Chip Leaders 

Speaking with CNBC-TV18, Kalyani said Bharat Forge is already working with three of the world’s five largest semiconductor companies. While he did not disclose the names of the firms, he indicated that the company has made significant progress in establishing its presence in the sector. 

The stock jumped on a foray into the semiconductor business, signalling diversification for the auto parts maker. Source: NSE 

The move marks a strategic diversification for Bharat Forge as India seeks to build a domestic semiconductor ecosystem and reduce dependence on imported chips. The government has been actively promoting semiconductor manufacturing through incentives and policy support, attracting investments across the value chain. 

Billion-Dollar Industry Opportunity 

Kalyani described semiconductors as a billion-dollar opportunity for the company, noting that Bharat Forge aims to leverage its engineering and precision manufacturing expertise to participate in the rapidly expanding industry. 

The stock has risen 33% this year versus Nifty midcap 50 index declining over 1% during the same period. Source: Google 

Market participants view the semiconductor push as part of the company’s broader strategy of expanding into high-technology sectors with strong long-term growth prospects. In recent years, Bharat Forge has diversified into defence, aerospace and advanced engineering businesses, reducing its reliance on the cyclical automotive sector. 

Analysts said the company’s manufacturing capabilities, global customer relationships and experience in precision engineering could provide a competitive advantage as it seeks to build a presence in the semiconductor supply chain. 

Investors Cheer Diversification Strategy 

The announcement reinforced investor confidence in Bharat Forge’s efforts to evolve into a technology-driven manufacturing company. The stock has increasingly attracted attention for its exposure to defence, aerospace and emerging industrial opportunities, in addition to its core forging business. 

With India pushing to become a global semiconductor hub and multinational chipmakers looking to diversify supply chains, investors believe Bharat Forge could be well positioned to benefit from rising investment in the sector. The comments from management added to optimism that the company may unlock new growth engines beyond its traditional operations, helping drive the stock higher during Wednesday’s session. 

Source

•  https://www.nseindia.com/get-quote/equity/BHARATFORG/Bharat-Forge-Limited