300 per cent returns: Sixteenth Street Asian Gems Fund bought 25,00,000 shares of this multibagger forging company after Ashish Kacholio bought 21,65,500 shares!
From Rs 115.45 per share to Rs 222 per share, Ashish Kacholia already made a profit of 92.30 per cent or Rs 23,07,34,025 (Rs 23.07 crore) since they bought the stock.
On Monday, the indices ended the trading session in the green. The BSE Sensex Index is up by 0.37 per cent at a level of 65,628. As of September 04, 2023, the market capitalisation of BSE-listed companies amounts to Rs 3,15,01,090.4 crore, accompanied by 402 stocks hitting a 52-week high and 29 stocks reaching a 52-week low.
Along with the market reacting positively, shares of this multibagger forging company surged 7.53 per cent to make a new 52-week high of Rs 222 per share from its previous closing of Rs 206.45 per share. At the closing bell, shares of the company were trading at Rs 218.35 per share, up 5.76 per cent with a spurt in volume by more than 1.02 times on BSE.
The sudden rise in the stock price today is due to the company announcing that Sixteenth Street Asian Gems Fund bought 25,00,000 or 25 lakh equity shares of a face value of Rs 10 each via preferential issue for cash at an issue price of Rs 183.60 per warrant including a premium of Rs 173.60 per share aggregating to Rs 45,90,00,000 or Rs 45.9 crore. Sixteenth Street Asian Gems Fund now owns a 2.32 per cent stake in the company.
Additionally, Mr Jaspalsingh Chandock and Mr Trimaan Jaspalsingh Chandock together bought 50,00,000 shares through a preferential issue (warrants). This increased their combined stake in the company to 80,86,064 shares, which is equivalent to 7.52 per cent.
Earlier, Ashish Kacholia, an ace investor bought 21,65,500 shares or a 2.16 per cent stake in this company via preferential issue of shares at an issue price of Rs 115.45 per share aggregating to Rs 25 crore. From Rs 115.45 per share to Rs 222 per share, he already made a profit of 92.30 per cent or Rs 23,07,34,025 (Rs 23.07 crore) since they bought the stock.
About the company: It is engaged in the manufacturing of fully finished and semi-finished forged crankshafts and forged components. It has the capability to manufacture components conforming to the new emission regulations & the new energy vehicles.
Financials: According to the Quarterly Results, net sales increased by 112.86 per cent and stood at Rs 112.38 crore, operating profit increased by 180.41 per cent to Rs 21.90 crore and net profit increased by 125.35 per cent to Rs 16.67 crore in Q1FY24 compared to Q1FY23. The company has a market cap of over Rs 2,100 crore and reported positive numbers in its annual results.
The stock gave multibagger returns of 300 per cent in just 1 year whereas BSE Sensex Index is up by 10.77 per cent.
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The forging stock that has seen a sharp increase in price and is generating a lot of interest is BALU FORGE INDUSTRIES LIMITED.
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Disclaimer: The article is for informational purposes only and not investment advice.