Ashish Kacholia Holds 3.56 Per Cent Stake & FIIs Bought 26,82,759 Shares: Multibagger Forging Stock Jumps Over 6 Per Cent On December 30
The stock gave multibagger returns of 220 per cent in just 1 year and a whopping 1,120 per cent in 2 years.
On Monday, shares of Balu Forge Industries Ltd (BFIL) jumped 6.01 per cent to Rs 786.55 per share from its previous closing of Rs 741.90 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) is a leading manufacturer of forged components established in 1989. The company specializes in both fully finished and semi-finished products, catering to diverse industries including automotive, defence, oil & gas, railways, and marine. BFIL possesses a robust production infrastructure with a wide product range, capable of manufacturing components from 1 kg to 1,000 kg. With a strong global presence through 80+ distribution networks, the company serves both domestic and international markets. Notably, BFIL's manufacturing capabilities align with the evolving automotive landscape, encompassing both New Emission Regulations and the requirements of New Energy Vehicles.
Regarding the recent acquisition of 7-Axis CNC machining capabilities, BFIL is pleased to provide further details. Currently, the company's rated machining capacity stands at 32,000 tons with a 70 per cent utilization rate. While the specific capacity increase is still under evaluation, the introduction of this advanced technology will significantly enhance precision and flexibility in machining operations. The full capacity expansion is expected to be completed within the fiscal year 2025-2026. The initial investment for the first 7-Axis CNC machine was Rs 21,03,823, funded through internal accruals. This strategic move aligns with BFIL's vision to expand its product portfolio into high-precision and critical components for sectors like aerospace, defence, railways and oil & gas.
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According to Quarterly Results, the net sales increased by 60.1 per cent to Rs 222.88 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 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 8,500 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 220 per cent in just 1 year and a whopping 1,120 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.