17,400 per cent returns & Promoters increase stake: Ashish Kacholia’s portfolio multibagger railway & defence stock jumps over 6 per cent today; Do you own it?

The stock gave multibagger returns of 275 per cent in just 1 year, 1,290 per cent in 2 years and a whopping 17,400 per cent in a decade.

Today, one of the Top Gainers on BSE, shares of Balu Forge Industries Ltd (BFIL) gained 6.6 per cent to Rs 799 per share from its previous closing of Rs 749.75 per share. The stock gave multibagger returns of over 400 per cent from its 52-week low is Rs 154.55 per share.

Balu Forge Industries Ltd. (BFIL), established in 1989, is a leading manufacturer of precision-engineered forged components, including crankshafts, catering to a wide range of industries like automobiles, defence, railways and even the new energy sector. Not only do they adhere to the latest emission regulations and produce components for new energy vehicles, but they are also actively researching new materials for lighter and more advanced components. BFIL has grown into a prominent player with over 1,000 employees, a global export network reaching over 80 countries and a trusted supplier to more than 25 original equipment manufacturers (OEMs).

The recent acquisition of advanced forging production lines has significantly expanded our annual production capacity of forged products to 72,000 tons. This strategic investment strengthens our engineering product portfolio, enhances our research and development capabilities, and positions us as a global leader in manufacturing highly complex products from a variety of alloys. By integrating this new unit with our existing operations and embracing Industry 4.0 technologies, we will be able to deliver comprehensive end-to-end solutions efficiently. Furthermore, the proposed fundraising of Rs 496.80 crore will facilitate the procurement of Solid Wheel Rolling Machinery, capable of producing 1,300 mm diameter railway wheels. This expansion will further solidify our contributions to the defence, railways, and aerospace sectors, aligning with the vision of 'Atmanirbhar Bharat' and 'Viksit Bharat'.

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 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.

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 275 per cent in just 1 year, 1,290 per cent in 2 years and a whopping 17,400 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.

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