Heavy buying witnessed: Ashish Kacholia's multibagger forging stock hits 52-week high; do you own it?

The stock gave multibagger returns of 185 per cent in just 6 months whereas BSE Sensex Index is up by 9 per cent.

On Friday, shares of Balu Forge zoomed 8.28 per cent to make a new 52-week high of Rs 179.70 per share from its previous closing of Rs 165.95. At the closing bell, the shares of the company are trading at Rs 176.75 per share, up 6.51 per cent.
The company has recently made an announcement regarding the preferential issue of a total of 1,37,27,000 crore equity shares with a face value of Rs 10 each for cash a premium of Rs 105.45 per share total aggregating to Rs 158.48 crore. The issue price is Rs 115.45.
The sudden rise in stock price was due to Ashish Kacholia, an ace investor, who participated in the preferential issue of shares. He acquired 21,65,500 shares, which represents 2.16 per cent of the total shares issued. In addition to Ashish Kacholia, there were 13 other new companies or individuals who participated in the preferential issue.

Balu Forge Industries Ltd is engaged in the manufacturing of fully finished and semi-finished forged crankshafts and forged components.

According to the financials, Balu Forge has a market cap of Rs 1,473.47 crore and a 3-year stock price CAGR of 60 per cent. The net sales increased by 50.42 per cent to Rs 123.78 crore and net profit increased by 43.27 per cent to Rs 15.24 in Q4FY23 over Q4FY22. The net sales increased by 14.18 per cent and net profit increased by 30.39 per cent in FY23 over FY22.

The stock gave multibagger returns of 185 per cent in just 6 months whereas BSE Sensex Index is up by 9 per cent. Investors should keep an eye on this Small-Cap stock.