Bharat Forge

Recently I bought some shares of Bharat Forge. It was in auto ancillary segment earlier. Now it has made foray into making engineering equipment for power plants/generation. It's current PE is 44 which makes a bit pricy and over valued. However on a long term basis due to its diversification it can be a multi bagger in years to come.

I recommend it as buy on dips for a long term horizon of 3 to 4 years. With power related infrastructure to be the next boom in India this decade (along with health care) it is worth taking the risk.

I expect the share to provide 100% return on the CMP of 255Rs.

Also recommended for reading is the intelligent investor book by Benjamin Graham. One of my friend Shashi recommended it to me. You can buy it from amazon directly if interested. I have given the link.