FIIs Bought 26,82,759 Shares: Ashish Kacholia’s Portfolio Multibagger Stock in Focus on Capacity Addition
The stock gave multibagger returns of 429.50 per cent from its 52-week low is Rs 154.55 per share.
On Tuesday, shares of Balu Forge Industries Ltd (BFIL) surged 1.97 per cent to Rs 818.35 per share from its previous closing of Rs 802.50 per share. The stock gave multibagger returns of 429.50 per cent from its 52-week low is Rs 154.55 per share.
Balu Forge Industries Ltd (BFIL) was incorporated in 1989 and manufactures fully finished and semi-finished Forged Components. It can manufacture components conforming to both New Emission Regulations & the New Energy Vehicles. The company has a fully integrated forging & machining production infrastructure with a large product portfolio ranging from 1 kg to 1,000 kg. The Company has 80+ global distribution networks and operates in domestic and export segments. The company also caters to the defence, oil & gas, railway and marine amongst other industries.
To further elaborate on our previous announcement regarding the acquisition of a 7-Axis CNC Machining capability, we would like to provide additional details on the capacity addition. Our current rated machining capacity stands at 32,000 tons, and the utilization rate was at 70% when the new machinery was imported. While the specific increase in capacity is yet to be determined, this strategic move introduces cutting-edge technology for high-precision machining. We anticipate completing the full capacity expansion within the fiscal year 2025-2026.
The initial investment for the first machine, which serves as a technology introduction, amounted to Rs 21,03,823. As we progress with acquiring additional machines in this domain, the total investment figure will be duly disclosed. The funding for the initial machine was sourced from internal accruals. This capacity expansion aligns with our vision to expand our product portfolio into high-precision and critical components for sectors like aerospace, defence, railways, and oil & gas. The new technology empowers us to machine complex geometries, enhance precision, increase flexibility, optimize material utilization, and streamline the production process.
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According to Quarterly Results, the net sales increased by 60.1 per cent to Rs 222.88 crore; EBITDA increased by 116.5 to Rs 65.22 crore and net profit skyrocketed by 106.9 per cent to Rs 48.14 crore in Q2FY25 compared to Q2FY24. Looking at its half-yearly results, the net sales increased by 58.3 per cent to Rs 398.2 crore; EBITDA increased by 108.4 to Rs 108.43 crore and net profit skyrocketed by 105.6 per cent to Rs 82.28 crore in H1FY25 compared to H1FY24. 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 19,90,500 shares or a 1.82 per cent stake in the company and his investment firm Bengal Finance & Investment Pvt Ltd owns 19,03,400 shares or 1.74 per cent stake in the company as of September 2024. In September 2024, FIIs bought 26,82,759 shares and increased their stake to 10.43 per cent compared to 8.51 per cent in June 2024. The company has a market capitalization of over Rs 8,900 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 245 per cent in just 1 year and a whopping 1,225 per cent in 2 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.