Ashish Kacholia’s portfolio gains Rs 7,29,43,650 in just 1 day from this multibagger forging stock; Hit 52-week high on July 11
The stock gave multibagger returns of 168.50 per cent from its 52-week low is Rs 154.55 per share.
Today, shares of Balu Forge Industries Ltd (BFIL) gained 8.72 per cent to an intraday high of Rs 415 per share from its previous closing of Rs 381.70 per share. The stock also made a fresh new 52-week high of Rs 415 per share with a spurt in volume by more than 1.01 times on BSE. The stock gave multibagger returns of 168.50 per cent from its 52-week low is Rs 154.55 per share.
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 & gas, railways and defence.
Balu Forge Industries Limited (BFIL) has carved a niche for itself in the domain of precision engineering and metal forming since its establishment in 1989. Over the past three decades, the company has not only excelled in manufacturing but has also strategically adapted to meet the evolving demands of the industry. BFIL's product portfolio caters to both conventional Internal Combustion Engine (ICE) applications and the needs of the emerging new energy vehicle sector. The company's state-of-the-art, fully integrated forging unit caters to a diverse clientele spanning automotive, agricultural, defence and high-performance applications.
BFIL has embraced Industry 4.0 practices to ensure scalability and efficiency in its operations. This translates to a strong workforce of over 1000 employees and a well-established export network reaching over 80 countries. The company is a trusted supplier to more than 25 original equipment manufacturers (OEMs) globally.
Earlier, BFIL announced a major expansion to become a leader in high-end forging, adding three cutting-edge production lines with a combined annual capacity of 72,000 tons. These lines will integrate into their new Belagavi campus, creating a one-stop shop for critical sectors needing high-tech machining. This expansion goes beyond production, boosting R&D in alloy development, allowing them to work with metals like aluminium and titanium and target key growth industries for critical engineering components. It also solidifies its position as a supplier to major OEMs across North America, Europe, Asia, and the Middle East.
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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 June 2024 (therefore, 21,90,500 shares x Rs 33.3 per share = 7,29,43,650 in just 1 day)
The company has a market capitalization of over Rs 4,200 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 130 per cent in just 1 year and a whopping 5,750 per cent in a decade. Investors should keep an eye on this Small-Cap stock.
Industry Outlook: The Indian metal forging market is expected to witness growth, increasing from USD 4.32 billion in 2022 to USD 8.80 billion by 2029, with a compounded annual growth rate (CAGR) of 10.69 per cent. Simultaneously, the global precision engineering machines market is anticipated to expand, projecting a size of USD 19.27 billion by 2028, compared to USD 12.33 billion in 2021.
Disclaimer: The article is for informational purposes only and not investment advice.
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