Ashish Kacholia gains Rs 8,48,81,875 in just 1 day from this multibagger forging stock; Company into business expansion and stock hit 52-week high today!

The stock gave multibagger returns of 150 per cent in just 1 year, 600 per cent in 2 years and a whopping 7,500 per cent in a decade.

Today, shares of Balu Forge Industries Ltd (BFIL) gained 9.45 per cent to an intraday high of Rs 448.90 per share from its previous closing of Rs 410.15 per share. The stock also made a fresh 52-week high of Rs 448.90 and its 52-week low is Rs 154.55. The stock gave multibagger returns of 190.5 per cent from its 52-week low is Rs 154.55 per share. 

BFIL has secured a substantial investment of Rs 496.80 crore through a combination of equity shares and convertible warrants. This capital infusion is strategically aimed at bolstering the company's manufacturing prowess and positioning it as a key contributor to India's self-reliance initiatives in the critical sectors of defense, railways, and aerospace. By enhancing its capabilities, BFIL aspires to play a pivotal role in realizing the vision of a developed India.

The newly acquired funds will be instrumental in propelling BFIL's growth trajectory. A significant portion of the investment is earmarked for intensive research and development endeavours to elevate the company's expertise in crafting defence and aerospace components. Additionally, BFIL plans to introduce cutting-edge manufacturing technologies, including a Direct Drive Screw Press Line for aerospace and high-precision components, as well as an SPM line dedicated to defence production. Furthermore, the company is actively exploring global collaborations through technology transfer and contract manufacturing agreements, particularly within the defence, railways, and aerospace domains. A key strategic move involves the acquisition of Solid Wheel Rolling Machinery, enabling BFIL to produce large-sized railway wheels and compete on a global scale. These comprehensive initiatives underscore BFIL's commitment to expanding its machining capacity and solidifying its position as a leading precision machining enterprise.

According to the shareholding pattern, Ashish Kacholia owns 21,90,500 shares or 2.09 per cent stake in the company as of June 2024. Therefore, Ashish Kacholia gains Rs 8,48,81,875 in just 1 day (21,90,500 shares x Rs 38.75 per share).

About the Company

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). Their recent expansion includes cutting-edge production lines and a focus on R&D in alloy development, solidifying their position as a leader in high-end forging and a supplier of critical components across the globe.

According to Quarterly Results, the net sales increased by 64.5 per cent to Rs 147.08 crore and net profit skyrocketed by 122.3 per cent to Rs 25.45 crore in Q4FY24 compared to Q4FY23. 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.

The company has a market capitalization of over Rs 4,500 crore and the shares of the company have an ROE of 22 per cent & an ROCE of 27 per cent. The stock gave multibagger returns of 150 per cent in just 1 year, 600 per cent in 2 years and a whopping 7,500 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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