On Tuesday, the shares of a prominent precision engineering company, known for manufacturing crankshafts and forged components, surged by 3.5%. This uptick followed the company’s announcement of acquiring three forging facilities to boost their capacity to produce 72,000 tons of forged products.
At 1:10 p.m., Balu Forge Industries Ltd shares were trading at ₹315.05 per share, up 0.57% on the Bombay Stock Exchange from the previous close price. The company has a market capitalization of ₹3,232 crore.
According to the company’s exchange filing, Balu Forge Industries Ltd has undertaken an expansion project through the acquisition of three state-of-the-art forging production lines.
The expansion involves the acquisition of three advanced forging production lines, which collectively have the capacity to produce up to 72,000 tons of forged products. Notable machinery within this setup comprises a 16-ton closed die forging hammer, a 10-ton closed die forging hammer, and an 8,000-ton capacity mechanical press.
The company’s new setup is slated to be fully automated and equipped with the latest technology, such as an antivibration system press line with robotic handling, aligning with the standards of the Industry 4.0 model. This advanced equipment will be installed in the upcoming greenfield project located at Belagavi, Karnataka.
The forging unit includes a 16 Ton closed-die forging hammer, one of the largest in the country, capable of producing forgings weighing between 800-900 kgs. To augment this capability, a 10 Ton closed-die forging hammer line and an 8,000T capacity mechanical forging press are being added.
These expansions are poised to strengthen the company’s presence in critical engineering sectors such as Oil and Gas, Aerospace, Defence, Railways, Mining, Aluminium, Auto part manufacturing, and others, as per statements from the company management.
Balu Forge Industries Ltd (BFIL), established in 1989, specializes in the manufacturing of fully finished and semi-finished crankshafts and Forged Components.
The company possesses the capability to manufacture components that adhere to both the latest Emission Regulations and the requirements of New Energy Vehicles. It boasts a comprehensive Integrated Forging & Machining production infrastructure, offering a wide-ranging product portfolio weighing between 1 Kg to 900 Kgs.
Additionally, the company maintains a robust global distribution network exceeding 80 channels, serving both domestic and international markets. Its clientele comprises esteemed suppliers and manufacturers in various sectors such as light vehicles, agricultural and power generation equipment, commercial vehicles, off-highway vehicles, ships, locomotives, and more.
Balu Forge Industries Ltd shares have increased by 31% over the past six months and by 205% over the past year.
The company’s revenue witnessed a substantial 35% year-on-year growth, climbing from ₹83.5 crore in Q4FY23 to ₹112.55 crore in Q4FY24. Simultaneously, the Net profit soared by an impressive 77%, from Rs 11.59 crore to Rs 20.72 crore during the same period.
Written by Omkar Chitnis
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