Ashish Kacholia Will Receive Rs 2,79,890 As Dividend from This Engineering Company: Reports Stellar Results; PAT Jumps 123.1 Per Cent in Q4FY25
The stock gave multibagger returns of 465 per cent in just 2 years and a whopping 1,590 per cent in 5 years.
On Wednesday, shares of Balu Forge Industries Ltd (BFIL) gained 2.38 per cent to Rs 618.35 per share from their previous closing of Rs 604 per share. The stock gave multibagger returns of over 170 per cent from its 52-week low is Rs 223 per share.
Balu Forge Industries Ltd (BFIL) is a leading manufacturer of forged components established in 1989. The company specialises in both fully finished and semi-finished products, catering to diverse industries including automotive, defence, oil & gas, railways, and marine. BFIL possesses a robust production infrastructure with a wide product range, capable of manufacturing components from 1 kg to 1,000 kg. With a strong global presence through 80+ distribution networks, the company serves both domestic and international markets. Notably, BFIL's manufacturing capabilities align with the evolving automotive landscape, encompassing both New Emission Regulations and the requirements of New Energy Vehicles.
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According to Quarterly Results, the net sales increased by 67.3 per cent to Rs 270 crore and net profit skyrocketed by 123.1 per cent to Rs 63 crore in Q4FY25 compared to Q4FY24. In its annual results, the net sales increased by 65 per cent to Rs 924 crore and net profit increased by 118 per cent to Rs 204 crore in FY25 compared to FY24. The board has recommended a final dividend of 1.5 per cent (Face Value Rs 10) that is Re 0.15 per share.
In FY25, the company demonstrated robust financial performance with a remarkable 566% surge in Cash Flow from Operations to Rs 148 crore, driven by improved EBITDA and efficient collection. The company also strengthened its balance sheet, reducing Total Debt to Rs 36 crore, increasing Cash and Equivalents to Rs 96 crore, resulting in a Net Cash position of Rs 60 crore and a significantly lower Total Debt/Equity ratio of 0.03x. Operationally, the company focused on strategic expansions, increasing forging capacity to 100,000 TPA and enhancing precision machining capabilities to cater to growing demand, particularly in the Defence, Aerospace, and Railway sectors. Technological advancements, including the integration of 7-axis machining and automation, further bolstered efficiency and product precision, while a broadened customer base and strategic geographic expansion in European and Asian markets position the company for sustained growth and diversification.
According to the shareholding pattern, Ashish Kacholia owns 18,65,933 shares or a 1.73 per cent stake in the company as of April 2025. Ashish Kacholia will receive Rs 2,79,890 as a dividend (Re 0.15 per share x 18,65,933 shares)
The company has a market capitalisation of over Rs 6,700 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 465 per cent in just 2 years and a whopping 1,590 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.