Balu Forge Industries shares jump 11%, hit all time high; here's why

Don't want to miss the best from Business Standard?

Shares of Balu Forge Industries soared up to 11.37 per cent, hitting their lifetime high at Rs 890 per share on the BSE in Tuesday’s intraday trade. The stock price jumped after the company announced the introduction of 7 Axis CNC machines from a prominent German manufacturer. These possess the capability to machine parts up to 3 metres in length. 

The major focus area for this acquisition of these machines is to move into a more elite category of machining companies that are capable of offering both advanced and critical machining solutions specific to industries like Railways, Defence, Aerospace and other critical precision industries globally, the company said in an exchange filing on Tuesday. 

Balu Forge Industries is a precision engineering company engaged in manufacturing of crankshafts and forged components.

Balu Forge's products include crankshafts, carriage, chassis, transmission and clutches, turbine blades, oil and gas control, hydraulic motors, brake parts, hooks, and towing accessories. The company’s products are used in the automotive, defence, railways, and new energy space industries

The company reported a major 133.36 per cent year-on-year (Y-o-Y) rise in its net profit for the June quarter (Q1FY25), at Rs 24.06 crore. The company had recorded a net profit of Rs 10.31 crore in the same quarter of FY24. The company’s net sales surged to Rs 123 crore in the April-June period of FY25, up from Rs 69.62 crore during the corresponding period of the previous year.

Tha market capitalisation of Balu Forge Industries is Rs 8,453.59 crore, according to Bombay Stock Exchange (BSE).

Its shares are trading at a price to earnings multiple of 108.11 times with an earning per share of Rs 7.39. The 52-week high of the company’s share is Rs 890 while its 52-week low is Rs 154.55 a piece. 

At 2:04 PM, Balu Forge Industries shares pared most of its gains and were trading 0.88 higher at Rs 806.10. In comparison, the BSE Sensex was trading 0.14 per cent higher at 85,050 levels.