Shares of Bharat Forge, Ramkrishna Forgings and GNA Axles surged 3-9% on October 6 as preliminary data showed orders for Class 8 trucks in North America hit a record high in September. According to ACT Research, preliminary Class 8 net orders were at 53,700 units, while NA 5-7 net orders were at 26,600. Classes 5 and 6-7 are truck, bus, recreational vehicle, and minivan configurations, while Class 8 is trucks and tractors.

Bharat Forge was quoted at Rs 768 on the NSE at 12 noon, surging 8.8%. GNA Axles rose 3% to Rs 667, while RK Forgings traded at Rs 211, up 3.5%.

According to ACT Vice President and Senior Analyst Eric Crawford, “The strength in orders reflects OEMs fully opening orders for 2023 earlier than normal, as the seasonally weak period for truck orders typically runs from May to September.”

“No matter how you slice the data, the Class 8 orders in September are sensational. Over the past 12 months, 249,800 Class 8 orders have been booked,” Crawford added. For Bharat Forge, North America and Europe accounted for nearly 40% of total revenue. Meanwhile, North America accounted for 45% of GNA Axles’ export earnings and 60% of RK Forgings.

Domestic brokerage Geojit Financial Services has an ‘Accumulate’ rating on Bharat Forge shares with a target price of Rs 815. “Demand for the automotive segment remains strong in domestic and export markets. We expect order inflows to continue,” the company said. Meanwhile, Sharekhan of BNP Paribas has a Buy rating on RK Forgings with a price target of Rs 238.