Promoters bought 23,50,000 shares: Back-to-back 52-week highs in the multibagger railway & defence forging stock with heavy volume; do you own it?

The stock gave multibagger returns of 225 per cent in just 1 year, 785 per cent in 2 years and a whopping 12,150 per cent in a decade.

Today, shares of Balu Forge Industries Ltd (BFIL) gained 3.72 per cent to Rs 599 per share from its previous closing of Rs 577.50 per share. The stock also made a fresh 52-week high of Rs 599 and its 52-week low is Rs 154.55. The stock gave multibagger returns of 287.6 per cent (Rs 437.45 per share gain) from its 52-week low is Rs 154.55 per share. In the recent, trading sessions, the stock has been hitting back-to-back 52-week highs.

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).

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’s acquisition of three state-of-the-art forging production lines, including a 16-ton and 10-ton closed-die forging hammer and an 8,000-ton mechanical press, will significantly expand our capacity to produce 72,000 tons of forged products annually. This investment strengthens our engineering product portfolio, enhances R&D, and positions us as a global leader in manufacturing highly complex products from various alloys. By integrating this new unit with our existing capabilities and adopting Industry 4.0 practices, we will deliver end-to-end solutions efficiently. Additionally, a proposed Rs 496.80 crore fundraising will support the procurement of Solid Wheel Rolling Machinery, capable of producing 1,300 mm diameter railway wheels, further bolstering our contributions to the defence, railways and aerospace sectors, aligning with the vision of 'Atmanirbhar Bharat' and 'Viksit Bharat'.

The company has a market capitalization of over Rs 6,000 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 225 per cent in just 1 year, 785 per cent in 2 years and a whopping 12,150 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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