Ashish Kacholia’s portfolio multibagger stock jumps after subscribing 40% equity in JV for defence, aerospace, railways & nuclear business

The stock gave multibagger returns of 315 per cent in just 2 years and a whopping 1,640 per cent in 5 years.

On Tuesday, shares of Balu Forge Industries Ltd (BFIL) gained 4.93 per cent to an intraday high of Rs 672 per share from their previous closing of Rs 640.40 per share. The stock gave multibagger returns of 114 per cent from its 52-week low is Rs 313.40 per share.

Balu Forge Industries Ltd, through a Board Meeting held on November 14, 2024, has announced the formation of a Joint Venture Company by subscribing to 40,000 equity shares of Swan Balu Heavy Industries Private Limited (SBHIPL). This new Special Purpose Vehicle (SPV), incorporated in April 2025 with Swan Energy Limited, will focus on business ventures within the Defence, Aerospace, Railways and Nuclear industries. Balu Forge Industries Ltd holds a 40 per cent equity stake in SBHIPL, making it an Associate company.

The primary objective for forming SBHIPL is to explore opportunities for supplying products and solutions tailored for the global Defence, Aerospace, Railways, and Nuclear sectors. The acquisition of shares was made at their face value of Rs. 10 per share through cash infusion. Since its incorporation in April 2025, SBHIPL has not had any turnover history for the last three years. No specific governmental or regulatory approvals were required for this transaction, and there is no indicative time period for the completion of this acquisition.

About the Company

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.

According to the shareholding pattern, Ashish Kacholia owns 18,65,933 shares or a 1.64 per cent stake in the company as of May 2025. Ashish Kacholia’s portfolio gains Rs 5,89,63,483 in just 1 day from this multibagger stock. The company has a market capitalisation of over Rs 7,500 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 315 per cent in just 2 years and a whopping 1,640 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.