FIIs Bought 26,82,760 Shares: Ashish Kacholia’s Portfolio Multibagger Forging Stock To Keep Under Radar As PAT Rises 106.9 Per Cent YoY To Rs 48.14 Crore

The stock gave multibagger returns of 275 per cent in just 1 year, 1,100 per cent in 2 years and a whopping 15,000 per cent in a decade.

Today, shares of Balu Forge Industries Ltd (BFIL) jumped 3.65 per cent to Rs 789.60 per share from its previous closing of Rs 761.75 per share. The stock gave multibagger returns of 411 per cent from its 52-week low is Rs 154.55 per share.  

Balu Forge Industries Ltd (BFIL) was incorporated in 1989 and is manufacturing fully finished and semi-finished Forged Components. It has the capacity to manufacture components conforming to both New Emission Regulations & the New Energy Vehicles. The company has a fully integrated forging & machining production infrastructure with a large product portfolio ranging from 1 kg to 1,000 kg. The Company has 80+ global distribution networks and operates through both domestic and export segments. The customers include some renowned suppliers and manufacturers of light vehicles, agricultural equipment, power generation equipment, commercial vehicles, off-highway vehicles, ships, locomotives, and many others. The company also caters to the defence, oil & gas, railway and marine amongst other industries.

Balu Forge Industries Ltd (BFIL) has achieved a significant milestone in acquiring 7-axis CNC machines, marking a strategic shift from its traditional forging business. This advanced technology positions BFIL among a select group of companies worldwide, capable of manufacturing high-precision components for industries like railways, defence and aerospace. The machines' capabilities, including parts up to 3 meters in length, align perfectly with BFIL's focus on these demanding sectors. This investment in cutting-edge technology will enable BFIL to expand its product portfolio to include complex components for various applications, solidifying its position as a key player in the global precision engineering market.

According to Quarterly Results, the net sales increased by 60.1 per cent to Rs 222.88 crore; EBITDA increased by 116.5 to Rs 65.22 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; EBITDA increased by 108.4 to Rs 108.43 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 26,82,760 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 8,400 crore and the shares of the company have an ROE of 26 per cent & an ROCE of 31 per cent. The stock gave multibagger returns of 275 per cent in just 1 year, 1,100 per cent in 2 years and a whopping 15,000 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.

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