ScoreWhy is Balu Forge Industries Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.07 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 54.24% and Operating profit at 94.55%
3
Flat results in Jun 26
- INTEREST(9M) At Rs 14.79 cr has Grown at 41.26%
- ROCE(HY) Lowest at 18.47%
- DEBT-EQUITY RATIO(HY) Highest at 0.10 times
4
With ROE of 16.2, it has a Very Expensive valuation with a 3.9 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -21.56%, its profits have risen by 18.2% ; the PEG ratio of the company is 2.6
5
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.08% over the previous quarter and collectively hold 9.85% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -2.96% in the last 1 year, its fall in the stock was much higher with a return of -21.56%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Balu Forge should be less than 10%
- Overall Portfolio exposure to Castings & Forgings should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Castings & Forgings)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Balu Forge for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Balu Forge
-21.55%
-0.41
51.96%
Sensex
-9.4%
-0.70
13.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
54.24%
EBIT Growth (5y)
94.55%
EBIT to Interest (avg)
12.67
Debt to EBITDA (avg)
0.78
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.00
Tax Ratio
15.40%
Dividend Payout Ratio
0.82%
Pledged Shares
1.37%
Institutional Holding
9.85%
ROCE (avg)
20.07%
ROE (avg)
18.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
31
Price to Book Value
3.94
EV to EBIT
21.12
EV to EBITDA
20.34
EV to Capital Employed
3.83
EV to Sales
5.40
PEG Ratio
2.57
Dividend Yield
0.02%
ROCE (Latest)
17.47%
ROE (Latest)
16.24%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bearish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
PBDIT(Q)
Highest at Rs 84.76 cr.
PBT LESS OI(Q)
Highest at Rs 76.87 cr.
-7What is not working for the Company
INTEREST(9M)
At Rs 14.79 cr has Grown at 41.26%
ROCE(HY)
Lowest at 18.47%
DEBT-EQUITY RATIO(HY)
Highest at 0.10 times
Loading Valuation Snapshot...
Here's what is working for Balu Forge
Operating Profit (PBDIT) - Quarterly
Highest at Rs 84.76 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 76.87 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for Balu Forge
Interest - Nine Monthly
At Rs 14.79 cr has Grown at 41.26%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.10 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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