Balu Forge Industries Ltd (BALUFORGE) AI Stock Analysis

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Balu Forge Industries Ltd

(NSE:BALUFORGE)

Select Model

Rating:74Outperform

Price Target:INR 617.00▲(11.96% Upside)

Action:upgraded

Date:11/13/26

The company's financial health is a tale of two stories: excellent profitability and a fortress balance sheet are overshadowed by persistent negative free cash flow. Technicals are positive but show signs of being overbought. The overall score reflects a fundamentally strong company with a significant cash flow risk that investors must monitor.

Positive Factors

Revenue Scale-UpThe substantial multi-year revenue expansion indicates that Balu Forge has materially increased its operating scale and customer activity. A larger revenue base can support stronger fixed-cost absorption, broader reinvestment capacity, and continued development of its forging and precision-machining platform.

Negative Factors

Persistent Negative Free Cash FlowSustained negative free cash flow means reported earnings have not consistently translated into discretionary cash generation. If this pattern continues, expansion may require greater working-capital funding or external financing, limiting flexibility and increasing execution risk.

Balu Forge Industries Ltd (BALUFORGE) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 64.52B
Dividend Yield: 0.03%
Average Volume (3M): 76.04K
Price to Earnings (P/E): 22.7
Beta (1Y): 1.97
Revenue Growth: 30.79%
EPS Growth: 22.38%
Country: India
Employees: 700
Sector: General
Sector Strength: 55
Industry: Manufacturing - Metal Fabrication

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, t...

Balu Forge Industries Ltd Financial Statement Overview

Summary

Strong profitability and a robust balance sheet are offset by weak and deteriorating cash flow. High margins and low leverage are positives, but negative free cash flow and poor cash conversion are significant concerns.

Income Statement

88Very Positive

Balance Sheet

90Very Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	11.75B	11.07B	9.24B	5.53B	3.27B	2.76B
Gross Profit	3.80B	3.53B	3.21B	1.62B	904.77M	556.63M
EBITDA	3.43B	3.32B	2.68B	1.25B	624.24M	453.73M
Net Income	2.68B	2.59B	2.04B	936.73M	389.13M	298.44M
Balance Sheet
Total Assets	0	18.51B	12.52B	7.12B	3.71B	2.84B
Cash, Cash Equivalents and Short-Term Investments	889.99M	889.99M	1.03B	908.64M	78.89M	71.10M
Total Debt	0	1.52B	397.84M	487.91M	518.72M	473.93M
Total Liabilities	-15.95B	2.56B	1.99B	1.59B	1.73B	1.26B
Stockholders Equity	15.95B	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

Technical Analysis SentimentPositive

Last Price551.10

Price Trends

50DMA503.99Positive

100DMA491.62Positive

200DMA478.11Positive

Market Momentum

MACD10.25Negative

RSI66.99Neutral

STOCH96.10Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BALUFORGE, the sentiment is Positive. The current price of 551.10 is above the 20-day moving average (MA) of 476.11, above the 50-day MA of 503.99, and above the 200-day MA of 478.11, indicating a bullish trend. The MACD of 10.25 indicates Negative momentum. The RSI at 66.99 is Neutral, neither overbought nor oversold. The STOCH value of 96.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:BALUFORGE.

Balu Forge Industries Ltd Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:BALUFORGE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:BALUFORGE	74Outperform	INR 62.83B	22.68	―	0.03%	30.79%	22.38%
IN:HAPPYFORGE	62Neutral	INR 170.94B	50.48	―	0.21%	22.81%	29.40%
IN:MMFL	62Neutral	INR 30.05B	22.30	―	0.63%	21.52%	44.72%
IN:RKFORGE	62Neutral	INR 139.28B	76.27	―	0.38%	25.19%	-38.28%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:TIRUPATIFL	50Neutral	INR 8.78B	95.88	―	―	48.01%	48.82%
IN:GANGAFORGE	37Underperform	INR 441.48M	-7.04	―	―	-17.43%	-2365.00%

* General Sector Average

Performance Comparison

IN:BALUFORGE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:BALUFORGE	Balu Forge Industries Ltd	551.10	-53.82	-8.90%
IN:GANGAFORGE	Ganga Forging Ltd.	1.30	-1.33	-50.55%
IN:HAPPYFORGE	Happy Forging Limited	1881.75	851.60	82.67%
IN:MMFL	MM Forgings Limited	637.85	331.52	108.22%
IN:RKFORGE	Ramkrishna Forgings Ltd	785.70	231.63	41.80%
IN:TIRUPATIFL	Tirupati Forge Ltd.	66.57	31.64	90.58%

Balu Forge Industries Ltd Corporate Events

Balu Forge wins multi-month contract for advanced 155 mm artillery shells

Aug 17, 2026

Balu Forge Industries Ltd has secured a multi-month contract from an Indian ammunition player for 155 mm Extended Range Full Bore Base Bleed and Boat Tail shells, following successful commercialisation and flawless execution of this advanced ammuniti...

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.

Date of analysis: Nov 13, 2026

Balu Forge Industries Ltd AI Stock Analysis