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Shares of Balu Forge Industries surged 18 per cent to a fresh 52-week high of Rs 267 on the BSE in early trade on Wednesday after the company reported robust September results (Q2FY24) and laid out a strong outlook.
The stock of the industrial products company has surpassed its previous high of Rs 238.70 touched on October 11. It was quoting close to its record high level of Rs 276.45 hit on October 18, 2021.
At 01:27 PM; Balu Forge was up 9 per cent at Rs 244.95, as compared to a 0.37 per cent decline in the S&P BSE Sensex.
The average trading volumes on the counter jumped over five-fold today. Around 729,000 equity shares changed hands on the BSE. Currently, the stock is trading under the ‘X’ segment, which is only listed/traded on the BSE.
Investor Ashish Kacholia held a 2.11 per cent stake in Balu Forge as of October 6, 2023, the shareholding pattern data shows.
Meanwhile, in Q2FY24, Balu Forge achieved its highest-ever revenue with a remarkable 130 per cent year-on-year (YoY) growth to Rs 139.23 crore. Profit after tax jumped nearly five-fold to Rs 23.27 crore from Rs 4.83 crore a year ago.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 719 per cent YoY to Rs 30.13 crore and margins have improved from 6.07 per cent in Q2FY23 to 21.64 per cent in Q2FY24.
The improvement in margins came on an increase in scale of operations, increased contribution from high-margin products and addition of new OEM’s customer.
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The management is confident that the company’s forthcoming capacity expansion, coupled with favorable macroeconomic trends, will pave the way to realize sustainable revenue growth and greater surpluses.
The management said the revenue is expected to conservatively grow by 25 per cent in FY24 over FY23, led by growth opportunities in the various industries like defence, railways, and others.
EBITDA margins are expected to be in the range of 22-23 per cent in the upcoming quarter on the back of increasing scale of operations and efficiencies thereon.
Balu Forge Industries is one of the leading companies in India mass-producing crankshafts. The company is engaged in the manufacturing of finished and semi-finished crankshafts and forged components and has a strong clientele comprising of 25 plus OEMs.
