Maintain NEUTRAL with a TP of Rs 1,088, based on 25x Jun-19E EPS. Bharat Forges (BHFC) 1QFY18 performance was in-line with expectations of APAT, while strong exports aided revenue beat. With a revival in the overseas industrial segment, the outlook for BHFC remains healthy. Its strategies for Aerospace, Defense and Auto transmission parts provide reason for optimism. However, all these segments contributions would be visible only from FY20E. North American truck demand has also recovered from the bottom, and production volumes are expected to accelerate in CY18.