Ashish Kacholia Portfolio Stock Balu Forge Shares Gain After Strong Q1 Results. Should You Buy?

Balu Forge’s share price rose over 2% on Wednesday following impressive Q1 results. The Ashish Kacholia portfolio stock has seen gains for five straight sessions, up more than 21% in just one week.

Strong Q1 Performance

Balu Forge Industries, a precision engineering and manufacturing company, reported a net profit of ₹34.16 crore in Q1 FY25, more than doubling from ₹16.67 crore a year ago—a 104.96% increase, driven by higher income.

Revenue from operations grew 56% YoY to ₹175.3 crore from ₹112.38 crore, thanks to client additions and strong demand for specialized engineering products.

EBITDA (Earnings before interest, taxes, depreciation, and amortization) grew by 97.31% YoY, with margins expanding by 516 basis points to 24.64%, due to increased scale and higher demand for heavier, more profitable products.

Industry Insights

Trimaan Chandock, Executive Director of Balu Forge, highlighted the rapid transformation in the Indian forging industry, supported by the strategic “China 1” initiative to de-risk supply chains. The company is focused on expanding its capabilities through strategic investments in assets and team growth to deliver high-quality, innovative products.

The board has recommended a final dividend of ₹0.15 per share for FY 2023-24.

Share Price Outlook

Balu Forge shares have surged over 77% in three months, hitting a 52-week high of ₹512.40 on July 30.

Sumeet Bagadia, Executive Director at Choice Broking, suggests that Balu Forge shares have a strong base at ₹470 and face resistance at ₹550. He advises current shareholders to hold the stock with a stop loss at ₹470 and aim for a short-term target of ₹550. New investors can also buy and hold the stock with the same target and stop loss. Long-term investors should consider a buy-on-dips strategy with a stop loss at ₹470.

As of 11:10 am, Balu Forge shares were trading flat at ₹491.45 on the BSE.