This Ashish Kacholia-owned stock has zoomed 92% from March low

Balu Forge Industries stock price: Ace investor Ashish Kacholia held 2.19 million, or 2.14 per cent stake, in Balu Forge as on March 31, 2024

Shares of Balu Forge Industries (BFIL) rallied 8 per cent to Rs 296 on the BSE in Friday's intraday trade amid heavy volumes, ahead of its listing on the National Stock Exchange (NSE) on Monday. The stock of the industrial products company was trading close to its record high level of Rs 301, touched on February 2, 2024.

Currently, the stock of the smallcap company is listed only on the BSE. It has recovered 92 per cent from its low of Rs 154.55, touched on March 14.

BFIL is a prominent precision engineering company, engaged in manufacturing of crankshafts and forged components. On Thursday, it announced that its shares shall be trading on the NSE effective Monday, April 29, 2024.

This will help grow and strengthen the visibility of BFIL amongst the entire capital market community, the company said. It further said the listing of BFIL's equity shares on NSE will ensure consistency and transparency which will likely enhance investor's confidence and visibility. Apart from monitoring the explicitness, NSE will entitle the investors with ensuring a lower impact cost, visibility, unprecedented global reach, and settlement guarantee.

In March, the stock had nearly halved, correcting sharply by 49 per cent, prompted by market regulator Securities and Exchange Board of India's (Sebi's) warning of expensive valuations in the mid and smallcap space.

Meanwhile, at 01:53 PM, Balu Forge was trading 7.7 per cent higher at Rs 293.95 as compared to 0.7 per cent decline in the S&P BSE Sensex. Average trading volume on the counter nearly doubled with as many as 1.2 million equity shares having changed hands on the counter, compared to an average 0.64 million shares traded in the past two weeks.

Ace investor Ashish Kacholia held 2.19 million, or 2.14 per cent stake, in Balu Forge as on March 31, 2024, shareholding pattern data shows. Kacholia increased his stake by 0.03 basis points  in the company in the March quarter as he held 2.11 per cent stake at the end of December 2023 quarter, data shows.

BFIL specialises in engineering and precision machined components industry, servicing a marquee global clientele spread across various industries such as aerospace, automotive, oil and gas, railways, and defense.

The management said the company's revenue is expected to conservatively grow in the range of 40-45 per cent in FY24 over FY23, led by new customer addition in sectors like railway and defence. The earnings before interest, taxes, depreciation, and amortization (Ebitda) margins are expected to be in the corridor of 23-24 per cent in the upcoming quarter on the back of increasing scale of operations and efficiencies thereon.