Ashish Kacholia, better known for his investing strategies and absence in the media, is one of the renowned Indian stock market investors.
He started his career with Prime Securities and later joined Edelweiss where he used to handle the equity research desk. Finally, he incorporated his broking firm, Lucky Securities, where he’s building his portfolio.
As per the latest corporate shareholdings filed, Ashish Kacholia publicly holds over 37 stocks with a net worth of around Rs. 2,923.2 crores. He focuses on companies with strong fundamentals. A few of his holdings have given him over 500 percent returns from the investment value.
Listed below is one such stock held by Ashish Kacholia that caters to various industries including aerospace, defence, and railway:
Balu Forge Industries Ltd
With a market capitalization of Rs. 8,282 crores, the shares of this smallcap company started Friday’s trading session on a flatter note at Rs. 813 compared to its previous close of Rs. 812.80.
During the trading session, the shares hit a low of Rs. 787, losing around 3 percent and closed the day at Rs. 790 apiece.
Financials:
Looking at the company’s financial statements, the revenue increased by 9 percent from Rs. 161 crores during the March quarter to Rs. 175 crores in the June quarter. In addition, the net profits surged by 21 percent from Rs. 21 crores to Rs. 34 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 56 percent from Rs. 112 crores during Q1FY24 to Rs. 175 crores in Q1FY25. In addition, the net profits magnified by 100 percent from Rs. 17 crores to Rs. 34 crores during the same timeframe.
Recent Development:
Earlier, the company acquired 7-axis CNC machines from a leading German manufacturer. These machines are designed for more advanced applications across various industries, particularly focusing on aerospace, defence, and railways.
The new acquisition will enhance the capability of the company to offer more precision-engineered components and further increase the product portfolio in these key industries.
Product Range:
Balu Forge Industries manufactures a variety of components that cater to various sectors, such as crankshafts, engine parts, and intricate assemblies for military and aerospace applications.
Further, the company’s comprehensive product range has multifaceted applications and caters to customers across industries such as automobiles, industrial vehicles, earthmoving machinery, wind energy, aerospace, defence, oil and gas, locomotives and railway applications, marine, agriculture and others.
Railway Sector:
Balu Forge Industries Ltd (BFIL) is increasingly establishing itself as a key player in the railway sector, leveraging its expertise in precision engineering and manufacturing.
The company has made significant strides in enhancing its manufacturing capabilities, particularly through recent funding initiatives aimed at expanding its production capacity for railway components.
Additionally, the company plans to invest in Solid Wheel Rolling Machinery capable of producing railway wheels up to 1,300 mm in diameter, which will position BFIL among the largest manufacturers of railway wheels globally.
Defence Sector:
The company has secured and successfully supplied defence components for over 5 years to forces in two prominent European countries, executing supply as a single source.
Further, BFIL plans to invest a large part of its capital expenditure for the next 10 years towards defence production, with key focus areas being artillery, undercarriage parts for armored vehicles, weapons and ammunition for light & heavy infantry, and forged and machined components for engine divisions.
Moreover, the company is setting up a dedicated unit for ammunition and advanced defence system production in partnership with prominent global players.
Future Outlook:
Balu Forge Industries Ltd (BFIL) is projecting moderate revenue growth of 40 percent to 45 percent for the fiscal year 2025 (FY25) compared to FY24. This anticipated growth is primarily driven by the addition of new customers in sectors such as railway and defence.
The company is focusing on expanding its customer base across various sectors, particularly in defence and railways, which are expected to contribute significantly to revenue growth.
Additionally, BFIL plans to invest heavily in enhancing its manufacturing capabilities, including acquiring advanced machinery and expanding production lines to support increased demand.
Following recent acquisitions, including a major facility from Mercedes-Benz, Balu Forge’s production capacity is set to increase significantly, from 18,000 TPA to 32,000 TPA, with additional plans to enhance forging capabilities to approximately 72,000 tons.
Moreover, Balu Forge Industries Ltd is strategically positioning itself as a leader in the aerospace, defence, and railways sectors through significant investments in manufacturing capacity and innovation-driven product development.
Prominent Investors:
According to the BSE data, Ace Investor Mr Ashish Kacholia, entering the stock in July 2023, currently holds around 21.90 lakh equity shares equivalent to a 2 percent stake in this company. The current holding value of his investment amounts to over Rs. 176 crores.
Conclusion:
Balu Forge Industries is on a transformative path, leveraging advanced technologies and strategic investments to solidify its presence in high-growth sectors. As BFIL continues to innovate and expand its offerings, it is set to play a pivotal role in shaping the future of precision engineering in these critical sectors.
Written By Vaibhav Patil
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