ScoreWhy is Balu Forge Industries Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.10 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 50.08% and Operating profit at 94.19%
3
The company has declared Positive results for the last 12 consecutive quarters
- OPERATING CF(Y) Highest at Rs 148.24 Cr
- DEBTORS TURNOVER RATIO(HY) Highest at 2.85 times
- NET SALES(Q) Highest at Rs 299.51 cr
4
With ROE of 19.5, it has a Very Expensive valuation with a 5.6 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -23.02%, its profits have risen by 79.7% ; the PEG ratio of the company is 0.4
5
Despite the size of the company, domestic mutual funds hold only 0.3% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.06% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.02% returns
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
-22.88%
-0.40
57.64%
Sensex
4.81%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
50.08%
EBIT Growth (5y)
94.19%
EBIT to Interest (avg)
10.52
Debt to EBITDA (avg)
0.81
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.04
Tax Ratio
18.25%
Dividend Payout Ratio
0.82%
Pledged Shares
0
Institutional Holding
13.22%
ROCE (avg)
20.36%
ROE (avg)
17.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
35
Price to Book Value
5.61
EV to EBIT
24.11
EV to EBITDA
23.66
EV to Capital Employed
5.45
EV to Sales
6.66
PEG Ratio
0.44
Dividend Yield
0.02%
ROCE (Latest)
22.61%
ROE (Latest)
19.52%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
OPERATING CF(Y)
Highest at Rs 148.24 Cr
DEBTORS TURNOVER RATIO(HY)
Highest at 2.85 times
NET SALES(Q)
Highest at Rs 299.51 cr
PBDIT(Q)
Highest at Rs 82.81 cr.
PBT LESS OI(Q)
Highest at Rs 76.63 cr.
PAT(Q)
Highest at Rs 65.04 cr.
EPS(Q)
Highest at Rs 5.71
-5What is not working for the Company
INTEREST(Q)
At Rs 4.03 cr has Grown at 80.72%
Loading Valuation Snapshot...
Here's what is working for Balu Forge
Debtors Turnover Ratio- Half Yearly
Highest at 2.85 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Operating Cash Flow - Annually
Highest at Rs 148.24 Cr
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 299.51 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 299.51 cr has Grown at 22.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 245.38 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 82.81 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 76.63 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 65.04 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.71
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Balu Forge
Interest - Quarterly
At Rs 4.03 cr has Grown at 80.72%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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