Bharat Forge has announced to form a Joint Venture with Alstom in India to manufacture equipment for super critical power plants.
The JV will design, engineer, manufacture and deliver turbine and Generator Island of 600-800 MW supercritical range with total installed capacity of 5 GW per annum.
The manufacturing infrastructure will also include plants for manufacturing of turbine, generators and all the auxiliaries that go into turbine Generator Island. The company has also announced the postponement of its right issue worth $84 million.
We maintain a BUY on the stock with a target price of Rs138.