Promoters bought 13,25,000 shares: Ashish Kacholia portfolio multibagger stock; Company announces stellar results and final dividend
The stock is trading above 50-DMA and 200-DMA.
On Thursday, shares of Balu Forge Industries Ltd (BFIL) gained 2.4 per cent to an intraday high of Rs 652.90 per share from their previous closing of Rs 637.65 per share. The stock gave multibagger returns of over 190 per cent from its 52-week low is Rs 223 per share. The stock is trading above 50-DMA and 200-DMA (DMA is Daily Moving Average).
Established in 1989, Balu Forge Industries Ltd (BFIL) manufactures forged components, both fully and semi-finished. The company caters to diverse sectors like automotive, defence, oil & gas, railways, and marine. BFIL's robust infrastructure manufactures components from 1 kg to 1,000 kg. With over 80 global distribution networks, BFIL serves domestic and international markets. Notably, BFIL's manufacturing aligns with evolving automotive demands, including New Emission Regulations and New Energy Vehicles.
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.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.
In FY25, the company achieved strong financial results, with Cash Flow from Operations surging by 566 per cent to Rs 148 crore due to improved EBITDA and efficient collections. The balance sheet also strengthened significantly, with Total Debt reduced to Rs 36 crore and Cash and Equivalents increasing to Rs 96 crore, resulting in a Net Cash position of Rs 60 crore and a much lower Total Debt/Equity ratio of 0.03x. Operationally, the company strategically expanded its forging capacity to 100,000 TPA and enhanced precision machining capabilities to meet growing demand, especially from the Defence, Aerospace, and Railway sectors. Technological advancements, including 7-axis machining and automation, boosted efficiency and product precision. Furthermore, a broader 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. The promoters of the company bought 13,25,000 shares in April 2025 and increased their stake to 55.78 per cent compared to March 2025. The company has a market capitalisation of over Rs 6,900 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 520 per cent in just 2 years and a whopping 1,750 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.