4,600 per cent returns: Heavy buying witnessed in Ashish Kacholia’s portfolio multibagger forging stock on CRISIL Ratings; Scrip hit 52-week high!

The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 4,600 per cent in a decade.

Today, shares of Balu Forge Industries Ltd (BFIL) gained 9.83 per cent to an intraday high of Rs 359.85 per share from its previous closing of Rs 327.65 per share. The stock also made a fresh new 52-week high of Rs 359/85 per share with a spurt in volume by more than 2 times on BSE. The stock gave multibagger returns of 133 per cent from its 52-week low is Rs 154.55 per share.

CRISIL Ratings assigned improved credit ratings to Balu Forge Industries Limited's bank facilities of Rs 76 crore. The long-term rating went up from 'CRISIL BB+/Stable (Issuer Not Cooperating)' to 'CRISIL BBB/Stable' and the short-term rating rose from 'CRISIL A4+ (Issuer Not Cooperating)' to 'CRISIL A3+'. These upgrades reflect Balu Forge's established market presence and financially strong position. However, it's important to note that the initial downgrade happened because the company didn't cooperate with CRISIL Ratings' assessment. CRISIL will continue to monitor Balu Forge's performance and might revise the ratings again in the future based on new information. This current rating letter is valid only until March 31, 2025, and a fresh rating letter will be required after that date.

Balu Forge Industries Ltd. is a manufacturer of precision-engineered forged components, including fully-finished and semi-finished crankshafts. Their products cater to a wide range of industries like automobiles, defence, railways, and even the new energy sector. The company not only adheres to the latest emission regulations and can produce components for new energy vehicles, but they are also actively researching new materials like lightweight alloys and advanced composites. BFIL is a prominent player in the specialized engineering and precision machined components industry servicing a marquee global clientele spread across various industries such as aerospace, automotive, oil and gas, railways and defence.  

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Earlier, the company announced its significant expansion plans to become a key player in the high-end global value-added critical forging and engineering sector. Included in this development are three modern forging lines which will process collectively 72,000 tons each year. These new lines will fit seamlessly into BFIL’s upcoming manufacturing campus at Belagavi in Karnataka thus providing an all-in-one solution for hi-tech machining needs for vital sectors. Through this expansion, BFIL not only enhances its production capabilities but also reinforces its R&D capacities towards alloy blending and metal combinations. This improved ability enables BFIL to produce products incorporating various alloys ranging from aluminium to titanium and catering to major growth industries for critical engineering products. Furthermore, it strengthens its position as an OEM supplier within North America, Europe, Asia as well as Middle East market segments.

According to Quarterly Results, the net sales increased by 64.5 per cent to Rs 147.08 crore and net profit skyrocketed by 122.3 per cent to Rs 25.45 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 14.2 per cent to Rs 326.64 crore and net profit increased by 30.4 per cent to Rs 38.91 crore in FY24 compared to FY23.

According to the shareholding pattern, Ashish Kacholia owns 21,90,500 shares or 2.14 per cent stake in the company as of April 2024. The company has a market capitalization of over Rs 3,500 crore and the shares of the company have an ROE of 22 per cent & an ROCE of 27 per cent. The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 4,600 per cent in a decade. Investors should keep an eye on this Small-Cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.