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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 531112 | NSE: BALUFORGE

Fundamental Analysis of Balu Forge Industries Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:13 am

Market Cap 2,518 Cr.
Current Price 245
High / Low301/92.6
Stock P/E31.2
Book Value 42.0
Dividend Yield0.00 %
ROCE26.9 %
ROE21.9 %
Face Value 10.0

Data Source: screener.in

Competitors of Balu Forge Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Thejo Engineering Ltd 3,242 Cr. 3,0123,090/1,29667.7 2050.07 %20.8 %18.1 % 10.0
McNally Bharat Engineering Company Ltd 97.3 Cr. 4.607.23/2.90 1770.00 %28.3 %% 10.0
Marshall Machines Ltd 64.6 Cr. 27.062.8/22.8 15.00.00 %5.59 %16.1 % 10.0
Lokesh Machines Ltd 872 Cr. 471473/12571.9 91.10.00 %9.83 %5.63 % 10.0
Manugraph India Ltd 70.6 Cr. 23.235.2/15.6 32.60.00 %12.5 %17.5 % 2.00
Industry Average869.30 Cr707.5627.92104.140.01%15.40%11.47%8.40

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales434348748182536289124112139147
Expenses39404365697245577210390109114
Operating Profit43691210851821223033
OPM %9%8%11%12%15%12%15%8%20%17%19%22%22%
Other Income0521153531042
Interest1321122334244
Depreciation0100000000001
Profit before tax25591113971717193030
Tax %37%9%28%23%26%20%17%34%33%12%13%22%16%
Net Profit1547811751115172325
EPS in Rs0.220.700.520.951.121.290.890.581.371.832.002.322.48

Last Updated: April 10, 2024, 6:19 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:45 pm

MonthMar 2021Mar 2022Mar 2023TTM
Sales142286327522
Expenses130249277417
Operating Profit123750105
OPM %9%13%15%20%
Other Income58137
Interest751114
Depreciation1112
Profit before tax10395196
Tax %22%24%23%
Net Profit8303981
EPS in Rs1.113.634.678.63
Dividend Payout %0%3%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2021-20222022-2023
YoY Net Profit Growth (%)275.00%30.00%
Change in YoY Net Profit Growth (%)0.00%-245.00%

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:%
TTM:82%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:%
TTM:134%
Stock Price CAGR
10 Years:47%
5 Years:31%
3 Years:2%
1 Year:151%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:22%

Last Updated: April 16, 2024, 9:23 pm

Balance Sheet

MonthMar 2021Mar 2022Mar 2023Sep 2023
Equity Capital698283100
Reserves775114330
Borrowings26475271
Other Liabilities7079121155
Total Liabilities171284371656
Fixed Assets42424848
CWIP0777
Investments0000
Other Assets129235316601
Total Assets171284371656

Reserves and Borrowings Chart

Cash Flow

MonthMar 2021Mar 2022Mar 2023
Cash from Operating Activity 17-5812
Cash from Investing Activity -3-8-7
Cash from Financing Activity -1269-6
Net Cash Flow24-1

Free Cash Flow

MonthMar 2021Mar 2022Mar 2023
Free Cash Flow-14.00-10.00-2.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2021Mar 2022Mar 2023
Debtor Days156165235
Inventory Days667056
Days Payable15775105
Cash Conversion Cycle65160186
Working Capital Days149191191
ROCE %29%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters69.85%64.62%64.62%64.62%66.24%65.41%65.41%65.41%65.41%65.41%57.47%56.07%
FIIs10.93%11.85%11.85%11.98%11.74%11.59%11.59%11.59%7.67%5.55%6.48%8.77%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%2.00%1.95%
Public19.22%23.53%23.53%23.40%22.02%23.01%23.00%23.01%26.92%29.05%34.05%33.21%
No. of Shareholders1,6811,8061,8162,6473,2093,9045,9866,4787,80612,12913,79818,054

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21
FaceValue10.0010.0010.00
Basic EPS (Rs.)4.674.051.85
Diluted EPS (Rs.)4.673.611.64
Cash EPS (Rs.)4.833.751.28
Book Value[Excl.RevalReserv]/Share (Rs.)23.7119.2711.30
Book Value[Incl.RevalReserv]/Share (Rs.)23.7119.2711.30
Revenue From Operations / Share (Rs.)39.1834.7520.71
PBDIT / Share (Rs.)7.495.542.55
PBIT / Share (Rs.)7.335.412.38
PBT / Share (Rs.)6.074.751.42
Net Profit / Share (Rs.)4.673.631.11
NP After MI And SOA / Share (Rs.)4.673.631.11
PBDIT Margin (%)19.1115.9312.31
PBIT Margin (%)18.7015.5611.50
PBT Margin (%)15.4813.666.85
Net Profit Margin (%)11.9110.435.36
NP After MI And SOA Margin (%)11.9110.435.36
Return on Networth / Equity (%)19.6818.819.82
Return on Capital Employeed (%)29.0726.6018.14
Return On Assets (%)10.4910.494.44
Long Term Debt / Equity (X)0.050.040.13
Total Debt / Equity (X)0.250.290.30
Asset Turnover Ratio (%)0.841.250.00
Current Ratio (X)1.862.001.58
Quick Ratio (X)1.641.641.33
Inventory Turnover Ratio (X)4.937.520.00
Dividend Payout Ratio (NP) (%)0.002.480.00
Dividend Payout Ratio (CP) (%)0.002.400.00
Earning Retention Ratio (%)0.0097.520.00
Cash Earning Retention Ratio (%)0.0097.600.00
Interest Coverage Ratio (X)5.938.712.65
Interest Coverage Ratio (Post Tax) (X)4.696.742.15
Enterprise Value (Cr.)774.881018.941459.34
EV / Net Operating Revenue (X)2.373.5610.27
EV / EBITDA (X)12.4122.3683.43
MarketCap / Net Operating Revenue (X)2.243.4210.12
Retention Ratios (%)0.0097.510.00
Price / BV (X)3.706.1818.56
Price / Net Operating Revenue (X)2.243.4210.12
EarningsYield0.050.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 292.72

The stock is undervalued by 19.48% compared to the current price ₹245

Calculation basis:

  • Fair value = (P/E Ratio * (Return on Equity / 100) * Book Value) * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 18.67%, which is a positive sign.
  2. The company has higher reserves (131.50 cr) compared to borrowings (49.00 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (319.25 cr) and profit (49.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 177.00, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 137.00, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Balu Forge Industries Ltd:
    1. Net Profit Margin: 11.91%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 29.07% (Industry Average ROCE: 14.66%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 19.68% (Industry Average ROE: 35.6%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.69
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.64
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✓ Stock P/E: 31.2 (Industry average Stock P/E: 50.58)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. ✓ Total Debt / Equity: 0.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating: ★★★★☆

About the Company

Balu Forge Industries Ltd. is a Public Limited Listed company incorporated on 17/03/1989 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L29100MH1989PLC255933 and registration number is 255933. Currently Company is involved in the business activities of Manufacture of diverse parts and accessories for motor vehecles sucs as brakes, gearboxes, axles, road wheels, suspension shock absorbers, radiators, silencers, exhaust pipes, catalysers, clutches, steering wheels, steering columns and steering boxes etc.. Company’s Total Operating Revenue is Rs. 285.06 Cr. and Equity Capital is Rs. 82.31 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Engineering - General506, 5th Floor, Imperial Palace, 45 Telly Park Road, Mumbai Maharashtra 400069compliance@baluindustries.com
http://www.amazeentertechlimited.com
Management
NamePosition Held
Mr. Jaspalsingh ChandockChairman & Managing Director
Mr. Trimaan Jaspalsingh ChandockExecutive Director
Mr. Jaikaran Jaspalsingh ChandockExecutive Director
Mr. Radheshyam SoniIndependent Director
Ms. Shalu BhandariIndependent Director

Balu Forge Industries Ltd. Share Price Update

Share PriceValue
Today₹245.40
Previous Day₹237.75

FAQ

What is the latest fair value of Balu Forge Industries Ltd?

The latest fair value of Balu Forge Industries Ltd is 292.72.

What is the Market Cap of Balu Forge Industries Ltd?

The Market Cap of Balu Forge Industries Ltd is 2,518 Cr..

What is the current Stock Price of Balu Forge Industries Ltd as on 23 April 2024?

The current stock price of Balu Forge Industries Ltd as on 23 April 2024 is 245.

What is the High / Low of Balu Forge Industries Ltd stocks in FY 2024?

In FY 2024, the High / Low of Balu Forge Industries Ltd stocks is ₹301/92.6.

What is the Stock P/E of Balu Forge Industries Ltd?

The Stock P/E of Balu Forge Industries Ltd is 31.2.

What is the Book Value of Balu Forge Industries Ltd?

The Book Value of Balu Forge Industries Ltd is 42.0.

What is the Dividend Yield of Balu Forge Industries Ltd?

The Dividend Yield of Balu Forge Industries Ltd is 0.00 %.

What is the ROCE of Balu Forge Industries Ltd?

The ROCE of Balu Forge Industries Ltd is 26.9 %.

What is the ROE of Balu Forge Industries Ltd?

The ROE of Balu Forge Industries Ltd is 21.9 %.

What is the Face Value of Balu Forge Industries Ltd?

The Face Value of Balu Forge Industries Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Balu Forge Industries Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE