Shares of Balu Forge Industries Ltd share rose 12 percent to Rs 169.95 and reached a 52-week high price on Thursday’s trading session. The stock jumped a day after ace investor Ashish Kacholia bought a 2.16 percent stake.
As per the exchange filing. The company board approved the issuance of 1,37,27,000 each on a preferential basis at an issue price of Rs 115.45 per share, Ashish Kacholia acquired 21,65,500 shares or 2.16 percent of the total shares offered. At 12:10 pm, the stock quoted Rs 163, up 8.05 percent on BSE.
In the past year, the company’s share price increased from Rs 73.80 to current levels, giving multibagger returns of 124.93 percent. Therefore, if an investor purchased 1 lakh company shares in the previous year, their holdings would now be worth 2.24 lakhs!
Balu Forge Industries is engaged in the manufacturing of fully and semi-finished forged crankshafts and Forged Components. According to the company’s financials, Operating revenue increased by 50 percent to Rs 123 crore in Q4FY23 compared to the same quarter the previous year. Similarly, Net profit rose by 50 percent to Rs 15 crores. Revenue grew modestly year on year, from Rs 286 crore in FY 21-22 to Rs 326 crore in FY 22-23, Within the stated term, the net profit increased from Rs 29 crore to Rs 38 crore.
Profitability ratios have remained consistent over time. For fiscal years 22-23, the ROE was 19.68 percent and the ROCE was 29 percent, similarly, the net profit margin was 11.91 percent and the operating margin was 18.70 percent.
As per the shareholding pattern, promoters of the company hold a 65.41 percent stake, and Foreign Institutional Investors (FIIs) have a 7.67 percent stake in the company for FY 22-23.
Written by Omkar C
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