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INVESTMENT INSIGHTS

Check Before You Invest : Balu Forge Industries Ltd

BSE: 531112 NSE: BALUFORGE ISIN: INE011E01029
  |   Sector:  Automobiles   |   Industry:  Forgings

Snapshot

Q.1 Which industry/sub-sector does Balu Forge Industries Ltd belong to?
Balu Forge Industries Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.
Q.2 Is Balu Forge Industries Ltd a good quality company?
Balu Forge Industries Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Balu Forge Industries Ltd undervalued or overvalued?
Balu Forge Industries Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Balu Forge Industries Ltd a good buy now?
Balu Forge Industries Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Balu Forge Industries Ltd?
Balu Forge Industries Ltd revenue growth is 54.2% for FY-2025 , which is below its 5 year CAGR of 395.7% , indicating slower growth.
Q.2 Gross Profit margin of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.3% for FY-2025 , which is above its 5 year median of 16.7% , indicating increasing margins.
Q.3 Operating Profit Margin of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.22% for FY-2025 , which is above its 5 year median of 17.38% indicating increasing margins.
Q.4 Net Profit Margin of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Net Profit Margin is 22.43% for FY-2025 , is above with its 5 year median of 11.89%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 31.3 16.7
Operating Profit Margin 29.22 17.38
Net Profit Margin 22.43 11.89
Q.5 Return on Asset of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Return on Asset is 14.83(x), which is above its 5 year historical median of 13.16(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Return on equity is 19.79% for FY-2025 , which is in line with its historical median of 19.79%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Return on capital employed is 25.14% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Cash conversion cycle is 103 , below its historical median of 103 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.66 0.85
ROE 19.79 19.79
ROCE 25.14 25.14
Cash Conversion Cycle 103 103
Q.9 Debt to Equity ratio of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Debt-to-Equity ratio is 0.04 , which is lower with the industry average of 0.49 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Balu Forge Industries Ltd?
Balu Forge Industries Ltd Debt to cash flow from operations is 0.24 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Balu Forge Industries Ltd?
Promoters hold 54.87% of the Balu Forge Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Balu Forge Industries Ltd vs industry peers?
Balu Forge Industries Ltd revenue CAGR is 395.68% , compared to the industry median CAGR of 11.56% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 598.5 115.9
Gross Profit 187.2 8.3
Operating Profit 175 13
Net Profit 134 4
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.66 0.92
ROE 19.79 14.91
ROCE 25.14 14.66
Cash Conversion Cycle 103.07 112

Valuation & price assessment

Q.1 Stock return of Balu Forge Industries Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 25.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 25.5% 16.2% 71.1% -27.4%
Q.3 Valuation ratios of Balu Forge Industries Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 38.66 26.38 50.79
Price to Book 4.07 5.01 3.87
Price to Sales 8.78 2.82 1.86
EV to EBITDA 26.09 19.08 16.47

Check more companies

1. Happy Forgings
2. Ramkrishna Forgings
3. Balu Forge Industrie
4. MM Forgings
5. Amic Forging
6. Tirupati Forge
7. Kalyani Forge
8. LGB Forge
9. Krishanveer Forge
10. Hilton Metal Forging
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