Balu Forge Industries Ltd (IN:BALUFORGE)
:BALUFORGE
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Balu Forge Industries Ltd
(BALUFORGE)
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Rating:61Neutral
Price Target:
₹477.00
▼(-18.26% Downside)
Action:Downgraded
Date:06/02/26
The score is primarily driven by strong profitability and a conservatively levered balance sheet, offset by persistently negative free cash flow that weakens earnings quality. Technicals are bearish with the stock trading below major moving averages, while valuation is moderately supportive due to a reasonable P/E and a ~3.3% dividend yield.
Positive Factors
Strong income statement & margins
Sustained revenue expansion from ~1.38B (FY2021) to ~11.07B (FY2026) with healthy gross and net margins indicates durable operating leverage and pricing power in forging. This supports long-term cash generation potential and reinvestment capacity, underpinning competitive positioning.
Negative Factors
Persistently negative free cash flow
Ongoing negative free cash flow undermines earnings quality despite reported profits. It forces reliance on financing or equity to fund growth, limits self-funded capex/dividends, and raises sensitivity to working-capital swings, increasing execution and liquidity risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong income statement & margins
Sustained revenue expansion from ~1.38B (FY2021) to ~11.07B (FY2026) with healthy gross and net margins indicates durable operating leverage and pricing power in forging. This supports long-term cash generation potential and reinvestment capacity, underpinning competitive positioning.
Read all positive factors
Balu Forge Industries Ltd (BALUFORGE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹51.50B
Dividend Yield0.02%
Average Volume (3M)25.83K
Price to Earnings (P/E)17.9
Beta (1Y)2.06
Revenue Growth10.89%
EPS Growth12.11%
CountryIN
Employees700
SectorIndustrials
Sector Strength72
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)22.30
Shares Outstanding113,991,900
10 Day Avg. Volume35,627
30 Day Avg. Volume25,826
Financial Highlights & Ratios
PEG Ratio0.64
Price to Book (P/B)2.62
Price to Sales (P/S)3.78
P/FCF Ratio-22.16
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)31.5
Revenue Forecast (FY)₹16.31B
Balu Forge Industries Ltd Business Overview & Revenue Model
Company Description
Balu Forge Industries Limited, an enterprise based in Mumbai, India, is engaged in the manufacturing and global distribution of crankshafts, which it supplies directly to Original Equipment Manufacturers (OEMs). Beyond its core crankshaft business...
How the Company Makes Money
Balu Forge Industries Ltd primarily makes money by manufacturing and selling forged components to business customers (B2B). Revenue is generated from (1) sale of forged parts produced to customer specifications, where pricing is typically driven b...
Balu Forge Industries Ltd Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
32
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.58B | 11.07B | 9.24B | 5.53B | 3.27B | 2.76B |
| Gross Profit | 3.62B | 3.53B | 3.21B | 1.62B | 904.77M | 556.63M |
| EBITDA | 3.16B | 3.00B | 2.68B | 1.25B | 624.24M | 453.73M |
| Net Income | 2.44B | 2.59B | 2.04B | 936.73M | 389.13M | 298.44M |
Balance Sheet | ||||||
| Total Assets | 15.24B | 18.51B | 12.52B | 7.12B | 3.71B | 2.84B |
| Cash, Cash Equivalents and Short-Term Investments | 378.19M | 889.99M | 1.03B | 908.64M | 78.89M | 71.10M |
| Total Debt | 815.35M | 1.52B | 397.84M | 487.91M | 518.72M | 473.93M |
| Total Liabilities | 2.75B | 2.56B | 1.99B | 1.59B | 1.73B | 1.26B |
| Stockholders Equity | 12.49B | 15.95B | 10.53B | 5.53B | 1.98B | 1.59B |
Cash Flow | ||||||
| Free Cash Flow | -1.50B | -1.89B | -2.68B | -1.66B | 49.09M | -654.07M |
| Operating Cash Flow | 403.60M | 182.66M | 1.48B | -179.74M | 261.57M | -577.37M |
| Investing Cash Flow | -1.91B | -3.54B | -4.17B | -1.48B | -212.48M | -76.70M |
| Financing Cash Flow | 919.94M | 3.28B | 2.74B | 2.49B | -56.81M | 689.57M |
Balu Forge Industries Ltd Technical Analysis
Negative
583.55
Price Trends
482.30
Negative
464.66
Negative
543.02
Negative
Market Momentum
-11.53
Positive
43.22
Neutral
37.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BALUFORGE, the sentiment is Negative. The current price of 583.55 is above the 20-day moving average (MA) of 465.14, above the 50-day MA of 482.30, and above the 200-day MA of 543.02, indicating a bearish trend. The MACD of -11.53 indicates Positive momentum. The RSI at 43.22 is Neutral, neither overbought nor oversold. The STOCH value of 37.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BALUFORGE.
Balu Forge Industries Ltd Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹38.39B | 14.88 | ― | ― | -0.98% | 228.03% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | ₹51.50B | 17.91 | ― | 0.02% | 10.89% | 12.11% | |
55 Neutral | ₹1.07B | 21.98 | ― | ― | 41.29% | -41.91% | |
54 Neutral | ₹6.05B | 96.34 | ― | ― | 41.31% | -30.95% | |
53 Neutral | ₹22.72B | 23.23 | ― | 1.07% | 4.24% | -19.47% | |
43 Neutral | ₹341.05M | -10.72 | ― | ― | -17.59% | -710.30% |
* Industrials Sector Average
IN:BALUFORGE
Balu Forge Industries Ltd
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-27.65%
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Balu Forge Industries Ltd Corporate Events
Balu Forge Industries Releases FY26 Earnings Report and Outlook
May 30, 2026
Balu Forge Industries Ltd has released its earnings report for the quarter and financial year ended 31 March 2026, submitting the documents to both BSE and NSE. The disclosure signals ongoing transparency with capital markets and provides investor...
Balu Forge Industries posts robust FY26 profit growth despite softer Q4
May 30, 2026
Balu Forge Industries reported strong full-year FY26 results, with revenue from operations rising 19.9% year-on-year to Rs 11,074 million, driven by broad-based demand across its end-user segments. Full-year EBITDA increased 19.3% to Rs 2,995 mill...
Balu Forge Clarifies CFO Resignation as Transition to Wider Strategic Role
May 26, 2026
Balu Forge Industries Ltd, a precision engineering specialist, produces a wide range of forged and machined components from 1 kg to 1,500 kg and up to 3 meters in length for diverse industries such as automotive, defence, energy, and transportatio...
Balu Forge Marks Aerospace Debut with First U.S. Order
May 26, 2026
Balu Forge Industries Ltd. has achieved a strategic milestone by winning its first order in the aerospace sector, securing a commercial purchase order from U.S.-based Alpha Aircraft Systems Inc. for precision-engineered components. The advance pay...
Balu Forge Schedules Karnataka Plant Visit for Analysts and Institutional Investors
Apr 12, 2026
Balu Forge Industries Limited has scheduled a plant visit to its Hattargi and Belgaum facilities in Karnataka on April 16, 2026 for analysts and institutional investors, including representatives from Kitara Capital and Taurus Mutual Fund. The vis...
Balu Forge Files SEBI Dematerialisation Compliance Certificate for March Quarter
Apr 9, 2026
Balu Forge Industries Ltd has submitted a confirmation certificate from its registrar and share transfer agent, Skyline Financial Services, for the quarter ended 31 March 2026 under Regulation 74(5) of the SEBI (Depositories and Participants) Regu...
Balu Forge Raises Rs 46 Crore via Conversion of Preferential Warrants
Mar 9, 2026
Balu Forge Industries Ltd, an engineering and forging specialist listed on BSE and NSE, manufactures high-precision components for automotive and industrial customers. Its capital-market access enables the company to support growth initiatives and...
Balu Forge Raises Rs 55.62 Crore via Conversion of Preferential Warrants
Mar 6, 2026
Balu Forge Industries Limited has allotted 2,060,000 equity shares of Rs. 10 each at an issue price of Rs. 360 per share following the conversion of an equivalent number of convertible warrants on March 6, 2026. The shares were allotted on a 1:1 b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.