Balu Forge Industries Ltd (BALUFORGE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

AIA Engineering

Nelcast

Inv.& Prec.Cast.

Tirupati Forge

Happy Forgings

Steelcast

Magna Electrocas

Synergy Green

Balu Forge

Amic Forging

ANB Metal

Why is Balu Forge Industries Ltd ?

The company declared negative results in Mar'26 after flat results in Dec'25

INTEREST(Latest six months) At Rs 10.19 cr has Grown at 62.78%
ROCE(HY) Lowest at 18.47%
OPERATING PROFIT TO INTEREST (Q) Lowest at 12.53 times

With ROE of 16.2, it has a Very Expensive valuation with a 3.4 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -33.80%, its profits have risen by 27% ; the PEG ratio of the company is 1.5

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -1.74% over the previous quarter and collectively hold 10.93% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) generated negative returns of -0.51% in the last 1 year, its fall in the stock was much higher with a return of -33.80%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Castings & Forgings)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Balu Forge for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Balu Forge

-33.8%

-0.72

47.26%

Sensex

-5.98%

-0.45

13.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

40.36%

EBIT Growth (5y)

68.42%

EBIT to Interest (avg)

12.08

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

1.40%

Institutional Holding

10.93%

ROCE (avg)

20.07%

ROE (avg)

18.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.41

EV to EBIT

19.00

EV to EBITDA

18.37

EV to Capital Employed

3.32

EV to Sales

4.97

PEG Ratio

1.45

Dividend Yield

0.02%

ROCE (Latest)

17.47%

ROE (Latest)

16.24%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

INTEREST(Latest six months)

At Rs 10.19 cr has Grown at 62.78%

ROCE(HY)

Lowest at 18.47%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 12.53 times

DEBT-EQUITY RATIO(HY)

Highest at 0.10 times

NET SALES(Q)

At Rs 263.55 cr has Fallen at -5.3% (vs previous 4Q average

PBDIT(Q)

Lowest at Rs 59.91 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 22.73%

PBT LESS OI(Q)

Lowest at Rs 51.95 cr.

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Here's what is not working for Balu Forge

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 51.95 cr has Fallen at -28.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 72.77 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Interest - Latest six months

At Rs 10.19 cr has Grown at 62.78%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Operating Profit to Interest - Quarterly

Lowest at 12.53 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

At Rs 263.55 cr has Fallen at -5.3% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 278.37 Cr

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 59.91 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 22.73%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 51.95 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.10 times

in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 23.47 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income