Heavy buying in this multibagger forging stock as the company announces listing of equity shares on NSE; Ashish Kacholia & FIIs increase their stake!
The stock gave multibagger returns of over 200 per cent in just 1 year whereas BSE Small-Cap Index is up by 66 per cent.
Today, shares of Balu Forge Industries Ltd gained 5.51 per cent to Rs 288 per share from its previous closing of Rs 272.95 per share. The stock’s 52-week high is Rs 301 and its 52-week low is Rs 92.55.
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. This focus on innovation suggests they are looking to expand their product offerings and solidify their position in the railway and defence industries.
Balu Forge Industries Ltd (BFIL), announced that their equity shares will begin trading on the National Stock Exchange of India (NSE) under the symbol "BALUFORGE" starting at the market opening on April 29th, 2024. This marks a significant step for BFIL as it gains access to a wider pool of investors on the prestigious NSE platform.
Commenting on the announcement, the management team of BFIL stated:
“We are pleased to inform that our company’s shares will also be listed/traded on the main board of NSE from April 29, 2024, this earmarks one of the credible milestones for BFIL, further this will help grow and strengthen the visibility of BFIL amongst the entire capital market community.
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.
The listing of BFIL’s Equity shares on NSE will ensure consistency and transparency which will likely enhance investor’s confidence and visibility. Apart from monitoring the explicitness, NSE will entitle the investors with the following perquisites;
- Ensuring a lower impact cost
- Visibility
- Unprecedented Global Reach
- Settlement Guarantee.”
Also Read: Role of artificial intelligence (AI) in stock market analysis.
As of March 2024, FIIs bought 9,62,291 shares and increased their stake to 9.71 per cent and Ashish Kacholia bought 25,000 shares and increased their stake to 2.14 per cent of this multibagger forging stock compared to 8.77 per cent and 2.11 per cent respectively in March 2023.
The company has a market capitalization of Rs 2,924 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 over 200 per cent in just 1 year whereas BSE Small-Cap Index is up by 66 per cent. 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.
DSIJ’s 'Tiny Treasure' service recommends researched small-cap stocks with Inherent Growth Potential. This service is available as part of the "Festive Savings" combo offer discounted at 51%. Do download the service details here.