17,500 per cent returns & Promoters increase stake: Ashish Kacholia’s portfolio multibagger railway, aerospace & defence forging stock jumps over 9 per cent today!
The stock gave multibagger returns of 280 per cent in just 1 year, 1,100 per cent in 2 years and a whopping 17,500 per cent in a decade.
Today, one of the Top Gainers on BSE, shares of Balu Forge Industries Ltd (BFIL) jumped over 9 per cent to Rs 798.9 per share from its previous closing of Rs 731.30 per share with a spurt in volume by more than 2 times. The stock gave multibagger returns of over 400 per cent from its 52-week low is Rs 154.55 per share. The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.
According to the shareholding pattern, Ashish Kacholia owns 21,90,500 shares or 2.09 per cent stake in the company and his investment firm Bengal Finance & Investment Pvt Ltd owns 21,65,500 shares or 2.06 per cent stake in the company as of July 2024. Additionally, promoters of the company bought 23,50,000 shares and increased their stake to 57.06 per cent in July 2024 compared to 56.07 per cent in June 2024 as per data available on BSE.
About the Company
Balu Forge Industries Ltd. (BFIL) is a leading manufacturer of precision-engineered forged components, established in 1989. The company caters to a diverse range of industries, including automobiles, defence, railways and new energy. BFIL has a strong commitment to sustainability, adhering to the latest emission regulations and producing components for electric vehicles. The company has expanded its operations significantly, with over 1,000 employees and a global export network reaching over 80 countries.
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Recently, BFIL has made strategic investments to enhance its production capacity and capabilities. The acquisition of advanced forging production lines has increased annual production to 72,000 tons. Additionally, the proposed fundraising will enable the purchase of Solid Wheel Rolling Machinery, further solidifying BFIL's position in the defence, railways and aerospace sectors. These investments align with the company's vision to contribute to India's self-reliance and development.
According to Quarterly Results, the net sales increased by 56 per cent to Rs 175.31 crore and net profit skyrocketed by 105 per cent to Rs 34.17 crore in Q1FY25 compared to Q1FY24. 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.
The company has a market capitalization of over Rs 8,000 crore and the shares of the company have an ROE of 25 per cent & an ROCE of 30 per cent. The stock gave multibagger returns of 280 per cent in just 1 year, 1,100 per cent in 2 years and a whopping 17,500 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.