Ashish Kacholia gains Rs 33,02,38,750 from this multibagger forging stock in just 6 months; scrip hit 52-week high!

The stock gave multibagger returns of 315 per cent in just 1 year whereas BSE Sensex Index is up by 18.45 per cent.

Indian stock markets ended the trading session in green on Thursday, with the BSE Sensex Index up 0.69 per cent at a level of 71,847.57 and the NSE Nifty-50 Index up 0.66 at 21,658.60. About 2,568 shares have advanced, 1,262 have declined and 111 were unchanged on BSE.

Along with the market in green, this multibagger forging stock bucked the trend and traded in the green. Let us know about this stock:

The stock we will be discussing today is BALU FORGE INDUSTRIES LTD.

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 25,00,06,975 in July 2023.  From Rs 115.45 per share to Rs 267.95 per share, he already made gains of 132 per cent or Rs 33,02,38,750 since they bought the stock in July 2023.

According to the Quarterly Results, the net sales increased by 129.91 per cent to Rs 139.22 crore, operating profit increased by 233.34 to Rs 34.19 crore and net profit increased by 382.2 per cent to Rs 23.27 crore in Q2FY24 compared to Q2FY23. According to the half-yearly results, the net sales increased by 121.97 per cent to Rs 251.61 crore and net profit increased by 226.8 per cent to Rs 39.94 crore in H1FY24 compared to H1FY23.

Earlier, the Board of Directors of the company allocated 25,00,000 fully paid-up equity shares for cash of Rs 10 each, for Rs 183.60 aggregating to Rs 45.90 crore to a Foreign Institutional Investor (FII), Sixteenth Street Asian Gems Fund. And, also allocated 50,00,000 fully convertible warrants aggregating to Rs 22.95 crore to the promoters of the company (Jaikaran Jaspalsingh Chandock & Trimaan Jaspalsingh Chandock)

Today, shares of Balu Forge Industries Ltd were trading session green, up 7.59 per cent to Rs 267.95 per share. The shares of the company saw a spurt in volume by more than 5 times on BSE.

Balu Forge Industries Ltd is engaged in the manufacturing of fully finished and semi-finished forged crankshafts and forged components. It can manufacture components conforming to the new emission regulations & the new energy vehicles. The shares of the company have an ROE of 22 per cent and an ROCE of 27 per cent.

The company has a market capitalization of over Rs 2,749 crore. The stock gave multibagger returns of 315 per cent in just 1 year whereas BSE Sensex Index is up by 18.45 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%. 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.