Balu Forge shares: Ashish Kacholia's multibagger stock rises 18% after Q2 results

Ashish Kacholia portfolio stock Balu Forge Industries was on a roll at Dalal Street on Wednesday. The shares of industrial products player surged more 18 per cent in the early trade to hit new record highs after the company announced its results for the period ended on September 30, 2023.

Balu Forge reported a 382 per cent jump on a year-on-year (YoY) basis in the net profit at Rs 23.27 crore for the September 2023 quarter, compared to a net profit of Rs 4.83 crore in the year ago period. Net profit margins improved to 16.71 per cent from 7.97 per cent during the given quarter.

The company reported a 130 per cent YoY rise in the revenue from operations at Rs 139.26 crore in Q2FY24, compared to a 112.39 crore in the year ago period. EBITDA came in at 30.12 crore, surging 719 per cent YoY with improved EBITDA margins of 21.64 per cent for the quarter.

Following the announcement of results, shares of Balu Forge Industries surged over 18 per cent to Rs 267 on Wednesday, hitting its new lifetime high levels. The company was commanding a market capitalization of more than Rs 2,600 crore. The scrip had settled at Rs 225.40 in the previous trading session.

For the half year ended September 30, 2023, Balu Forge reported a 227 per cent rise in the net profit at Rs 39.94 crore with a profit margin of 15.87 per cent. Revenue from operations rose 127 per cent YoY to Rs 251.61 crore for the April-September 2023 period, while EBITDA spurt 472 per cent to Rs 52.02 crore. EBITDA margins stood at 20.68 per cent for the H1FY24.

Ashish Kacholia's multibagger pick Balu Forge has zoomed about 400 per cent from its 52-week low at Rs 53.90 hit in late November 2022. The stock has surged 280 per cent in the year 2023 so far, while it is up 175 per cent in the last six month period. The seasoned investor held 21,65,500 equity shares or 2.11 per cent stake in the company as of September 30, 2023.
 

Balu Forge Industries is a homegrown forging player which is into mass-production of crankshafts. It is engaged in the manufacturing of finished and semi-finished crankshafts and forged components and has a strong clientele of more than 25 OEMs.

It has a precision machining unit, located in Belgaum, Karnataka, with a comprehensive product range which caters to customers across various industries such as automobiles, ships, locomotives, aerospace, defence, oil and gas, railway, marine, prototypes and others. It has an existing capacity to produce 18,000 tonnes of forged components per annum.

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