FIIs Bought 32,30,696 Shares: Ashish Kacholio’s Portfolio, Multibagger Railway; Aerospace & Defence Forging Stock in Focus As Company Acquires 7 Axis CNC machines
The stock gave multibagger returns of 315 per cent in just 1 year, 1,200 per cent in 2 years and a whopping 20,000 per cent in a decade.
Balu Forge Industries Ltd (BFIL) has achieved a significant milestone in its journey towards becoming a leading value-added precision engineering company. The recent acquisition of 7-axis CNC machines marks a strategic shift from its traditional forging business. This new capability positions BFIL among a select group of companies worldwide that possess the advanced technology required to manufacture high-precision components for industries such as railways, defence, aerospace and others.
BFIL's acquisition of 7-axis CNC machines from a renowned German manufacturer is a testament to its commitment to providing cutting-edge solutions. These machines are capable of machining parts up to 3 meters in length, offering unparalleled precision and flexibility. The company's strategic focus on industries like aerospace, defence and railways aligns with the capabilities of these machines, allowing BFIL to cater to the demanding requirements of these sectors.
The introduction of 7-axis CNC machining technology will significantly enhance BFIL's ability to manufacture complex components with exceptional precision. This capability will enable the company to expand its product portfolio to include high-precision parts for various applications, such as turbine components, aircraft frames, engine components, landing gear components, weapon system components, vehicle parts, locomotive parts, frame structures, track components, valve bodies and pump components. By investing in this advanced technology, BFIL is positioning itself as a key player in the global precision engineering market.
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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.
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.
According to the shareholding pattern, Ashish Kacholia owns 21,90,500 shares or a 2 per cent stake in the company and his investment firm Bengal Finance & Investment Pvt Ltd owns 21,65,500 shares or 1.98 per cent stake in the company as of September 2024. In September 2024, FIIs bought 32,30,696 shares and increased their stake to 10.94 per cent compared to 8.51 per cent in June 2024. The company has a market capitalization of over Rs 8,500 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 315 per cent in just 1 year, 1,200 per cent in 2 years and a whopping 20,000 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.