BHARATFORG

In 4QFY25, BHFC (standalone) posted a 9% YoY decline in PAT to INR3.6b (in line). The key highlight of 4Q was that the US subsidiary achieved EBITDA break-even for the first time in many quarters. However, the demand outlook for most of its segments remains uncertain given the adverse global macro. We have marginally lowered our estimates to factor in demand weakness across its key auto segments. Given the current uncertain outlook for standalone and overseas subsidiaries, the stock at 37.9x/28.6x FY26E/FY27E consolidated EPS appears fairly valued. We reiterate our Neutral rating with a TP of INR1,090 (based on 28x FY7E cons. EPS).Given the current uncertain outlook for standalone and overseas subsidiaries, the stock at 37.9x/28.6x FY26E/FY27E consolidated EPS appears fairly valued.