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Balu Forge Industries Ltd (IN:BALUFORGE)
:BALUFORGE
India Market
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Balu Forge Industries Ltd (BALUFORGE) AI Stock Analysis

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IN:BALUFORGE

Balu Forge Industries Ltd

(BALUFORGE)

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Neutral 68 (OpenAI - Gpt-5.6Sol)
Rating:68Neutral
Price Target:
₹590.00
▲(36.12% Upside)
Action:Reiterated
Date:08/25/26
The score is driven primarily by strong profitability and a conservatively levered balance sheet, but it is materially tempered by weak cash conversion and sustained negative free cash flow. Technically the stock is in a strong uptrend, yet very overbought momentum signals and high volatility increase near-term risk. Valuation is moderately demanding at ~26x earnings, with a ~2.37% dividend offering partial support.
Positive Factors
Rapid Revenue Growth
The multi-year revenue scale-up indicates substantial expansion in customer demand and production activity. Continued growth gives Balu Forge greater operating scale, supports investment in capacity and capabilities, and can strengthen its position across automotive, railways, defense, and engineering markets over the next several quarters.
Negative Factors
Weak Cash Conversion
Persistent negative free cash flow means reported profits are not yet translating into comparable cash generation. Heavy reinvestment or working-capital requirements can increase funding needs, limit financial flexibility, and make execution of the company’s expansion more dependent on effective cash management.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Growth
The multi-year revenue scale-up indicates substantial expansion in customer demand and production activity. Continued growth gives Balu Forge greater operating scale, supports investment in capacity and capabilities, and can strengthen its position across automotive, railways, defense, and engineering markets over the next several quarters.
Read all positive factors

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

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
BALUFORGE primarily makes money by manufacturing and selling forged and (where applicable) value-added machined components to business customers (B2B). Key revenue streams typically include: (1) sale of forged components produced from metal billet...

Balu Forge Industries Ltd Financial Statement Overview

Summary
Strong income statement (Score 84) and balance sheet (Score 88) with high profitability and low leverage, but cash flow is a major concern (Cash Flow Score 32) due to persistently negative free cash flow and weak cash conversion versus earnings, which meaningfully reduces overall financial quality.
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
32
Negative
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue11.75B11.07B9.24B5.53B3.27B2.76B
Gross Profit3.80B3.53B3.21B1.62B904.77M556.63M
EBITDA3.43B3.32B2.68B1.25B624.24M453.73M
Net Income2.68B2.59B2.04B936.73M389.13M298.44M
Balance Sheet
Total Assets0.0018.51B12.52B7.12B3.71B2.84B
Cash, Cash Equivalents and Short-Term Investments889.99M889.99M1.03B908.64M78.89M71.10M
Total Debt0.001.52B397.84M487.91M518.72M473.93M
Total Liabilities-15.95B2.56B1.99B1.59B1.73B1.26B
Stockholders Equity15.95B15.95B10.53B5.53B1.98B1.59B
Cash Flow
Free Cash Flow-1.50B-1.89B-2.68B-1.66B49.09M-654.07M
Operating Cash Flow403.60M182.66M1.48B-179.74M261.57M-577.37M
Investing Cash Flow-1.91B-3.54B-4.17B-1.48B-212.48M-76.70M
Financing Cash Flow919.94M3.28B2.74B2.49B-56.81M689.57M

Balu Forge Industries Ltd Technical Analysis

Technical Analysis Sentiment
Positive
Last Price433.45
Price Trends
50DMA
496.40
Positive
100DMA
488.85
Positive
200DMA
499.96
Positive
Market Momentum
MACD
24.69
Positive
RSI
48.39
Neutral
STOCH
9.78
Positive
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 433.45 is below the 20-day moving average (MA) of 566.36, below the 50-day MA of 496.40, and below the 200-day MA of 499.96, indicating a neutral trend. The MACD of 24.69 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 9.78 is Positive, 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
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
₹65.63B22.310.03%30.79%22.38%
65
Neutral
₹210.26B64.240.18%15.53%21.46%
60
Neutral
₹8.97B144.580.11%42.34%-20.35%
57
Neutral
₹29.83B26.300.65%9.58%2.00%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
50
Neutral
₹128.73B119.070.14%8.55%-74.66%
47
Neutral
₹549.32M-8.61-17.43%-2365.00%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:BALUFORGE
Balu Forge Industries Ltd
541.45
-126.35
-18.92%
IN:GANGAFORGE
Ganga Forging Ltd.
1.59
-1.39
-46.61%
IN:HAPPYFORGE
Happy Forging Limited
2,234.40
1,357.76
154.88%
IN:MMFL
MM Forgings Limited
615.30
291.93
90.28%
IN:RKFORGE
Ramkrishna Forgings Ltd
700.55
120.33
20.74%
IN:TIRUPATIFL
Tirupati Forge Ltd.
70.02
30.91
79.03%

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 ammun...
Balu Forge Schedules Investor Plant Visit and Analyst Meet for July 2
Jun 29, 2026
Balu Forge Industries Limited has notified stock exchanges that it will host a plant visit for investors and analysts at its Belgaum and Hattargi facilities on Thursday, July 2, 2026. The visit will be conducted as a group physical meeting, follow...
Balu Forge Plans Non-Deal Investor Roadshow on 24 June
Jun 19, 2026
Balu Forge Industries has scheduled a non-deal roadshow for investors and analysts on 24 June 2026, organized by Churchgate Partners, to be held through both one-on-one and group physical meetings. Management plans to discuss the company’s 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.Date of analysis: Aug 25, 2026