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Balu Forge Industries Ltd
(BALUFORGE)
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Rating:68Neutral
Price Target:
₹542.00
▲(25.04% 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 Scale-Up
The substantial multi-year revenue increase indicates that Balu Forge has expanded its operating scale and customer activity across its manufacturing business. A larger revenue base can support better capacity utilization, broader market reach, and continued investment in higher-value forged and machined components.
Negative Factors
Persistent Negative Free Cash Flow
Repeated negative free cash flow means reported earnings are not yet translating consistently into deployable cash. Although expansion can require investment, the persistence and magnitude of the gap increase execution risk, constrain internally funded growth, and make working-capital and reinvestment discipline important.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue Scale-Up
The substantial multi-year revenue increase indicates that Balu Forge has expanded its operating scale and customer activity across its manufacturing business. A larger revenue base can support better capacity utilization, broader market reach, and continued investment in higher-value forged and machined components.
Read all positive factors
Balu Forge Industries Ltd (BALUFORGE) vs. iShares MSCI India ETF (INDA)
Market Cap
₹58.47B
Dividend Yield0.03%
Average Volume (3M)83.68K
Price to Earnings (P/E)20.1
Beta (1Y)2.10
Revenue Growth30.79%
EPS Growth22.38%
CountryIN
Employees700
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Metal Fabrication
Share Statistics
EPS (TTM)24.28
Shares Outstanding117,621,900
10 Day Avg. Volume34,535
30 Day Avg. Volume83,680
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
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
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 | 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 | 0.00 | 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 | 0.00 | 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
Negative
433.45
Price Trends
512.79
Negative
488.58
Positive
491.33
Positive
Market Momentum
-10.45
Positive
42.48
Neutral
27.74
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 433.45 is below the 20-day moving average (MA) of 523.33, below the 50-day MA of 512.79, and below the 200-day MA of 491.33, indicating a neutral trend. The MACD of -10.45 indicates Positive momentum. The RSI at 42.48 is Neutral, neither overbought nor oversold. The STOCH value of 27.74 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | ₹58.47B | 20.14 | ― | 0.03% | 30.79% | 22.38% | |
65 Neutral | ₹195.03B | 57.71 | ― | 0.20% | 15.53% | 21.46% | |
60 Neutral | ₹9.97B | 155.19 | ― | 0.11% | 42.34% | -20.35% | |
57 Neutral | ₹28.86B | 24.42 | ― | 0.70% | 9.58% | 2.00% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹127.80B | 118.07 | ― | 0.14% | 8.55% | -74.66% | |
43 Neutral | ₹518.99M | -8.01 | ― | ― | -17.43% | -2365.00% |
* General Sector Average
IN:BALUFORGE
Balu Forge Industries Ltd
488.50
-148.06
-23.26%
IN:GANGAFORGE
Ganga Forging Ltd.
1.48
-1.35
-47.65%
IN:HAPPYFORGE
Happy Forging Limited
2,004.30
1,081.98
117.31%
IN:MMFL
MM Forgings Limited
568.15
258.90
83.72%
IN:RKFORGE
Ramkrishna Forgings Ltd
695.00
156.42
29.04%
IN:TIRUPATIFL
Tirupati Forge Ltd.
75.16
38.43
104.63%
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...
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.