Shares of this micro-cap company specialized in manufacturing precision forged and machined components hit a 5 percent upper circuit on Wednesday morning after the company reported a 1,020 percent QoQ increase in net profit, and strong revenue growth in its latest quarterly results.
Share Price Movement
During Wednesday’s trading session, Kalyani Forge Ltd’s share price reached an intra-day high of Rs.482.35 per share, hitting a 5 percent upper circuit limit from the previous close of Rs.458.55 apiece.
Rationale for Rise
The strong bullish movement in Kalyani Forge Ltd’s stock price resulted from substantial revenue and net profit growth in the latest quarter. In its recent filing for the quarter ending September 2024, the company reported a 2 percent increase in revenue, reaching Rs.62.33 crore compared to Rs.60.91 crore in Q2 FY24. Sequentially, revenue also rose by 10 percent from Rs.56.74 crore in Q1 FY25.
During the same period, the company posted a remarkable 201 percent increase in net profits to Rs.3.92 crore in Q2 FY25 from Rs.1.30 crore in Q2 FY24 and an exceptional 1,020 percent from Rs.0.35 crore in Q1 FY25.
In terms of return ratios, return on capital employed (ROCE) is currently at 8.85 percent, while return on equity (ROE) is at 5.64 percent. The company has a strong current ratio of 1.34 and a debt-to-equity ratio of 0.76.
Product Portfolio
Kalyani Forge manufactures precision-forged and machined components, primarily serving the automotive industry. Its product range includes engine parts such as connecting rods, chassis systems, turbocharger components, and transmission parts, produced using advanced forging technologies for precise specifications.
Reputed Client
Kalyani Forge Ltd. supplies a diverse clientele across multiple sectors. Among its prominent international clients are Cummins, Renault, Honeywell, and JCB, while key domestic clients include Ashok Leyland, Bosch Chassis Systems, Mahindra & Mahindra, and Hero Honda Motors. The company also serves industries like marine, construction, and power generation, highlighting its broad customer base.
About the Company
Kalyani Forge Limited, established in 1979, is an Indian manufacturer specializing in precision-forged and machined components for sectors including automotive, agriculture, and power generation.
The company uses advanced press technology across its certified facilities in Pune, focusing on innovation and rigorous quality control. Kalyani Forge adheres to international standards and emphasizes customer satisfaction.
Written by – Siddesh S Raskar
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