Ashish Kacholia gains Rs 28,68,20,475 from this multibagger forging stock in just 3 months; Company reports a 382 per cent jump in net profit!

The stock gave multibagger returns of 270 per cent in just 1 year whereas BSE Sensex Index is up by 13.35 per cent.

Indian stock markets were trading in green on Friday, with the BSE Sensex Index up 0.60 per cent at a level of 64,465 and the NSE Nifty-50 Index up 0.63 at 19,253. About 2,106 shares have advanced, 618 have declined and 94 were unchanged on BSE.

Along with the market in green, this multibagger 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 247.90 per share, he already made gains of 114.72 per cent or Rs 28,68,20,475 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 company has allocated 25,00,000 fully paid-up equity shares for cash of Rs 10 each, at a price of Rs 183.60 aggregating to Rs 45.90 crore to a Foreign Institutional Investor (FII), Sixteenth Street Asian Gems Fund. And, also has 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)

On Friday, shares of Balu Forge Industries Ltd were trading session green, up 2.27 per cent to Rs 247.90 per share. The shares of the company have an ROE of 21.9 per cent and an ROCE of 26.9 per cent.

Balu Forge Industries Ltd is engaged in the manufacturing of fully finished and semi-finished forged crankshafts and forged components. It has the capability to manufacture components conforming to the new emission regulations & the new energy vehicles

The company has a market capitalization of over Rs 2,500 crore. The stock gave multibagger returns of 270 per cent in just 1 year whereas BSE Sensex Index is up by 13.35 per cent. Investors should keep an eye on this Small-Cap stock.

Industry Outlook: The India metal forging market is projected to grow from USD 4.32 billion in 2022 to USD 8.80 billion by 2029, at a CAGR of 10.69 per cent. The global precision engineering machines market size is estimated to reach USD 19.27 billion by 2028 from USD 12.33 billion in 2021.

Disclaimer: The article is for informational purposes only and not investment advice.