Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
post
Last Updated on: 10 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 531112 | NSE: BALUFORGE

Balu Forge Industries Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 9, 2024, 9:42 pm

Market Cap 8,765 Cr.
Current Price 803
High / Low890/155
Stock P/E64.4
Book Value 83.4
Dividend Yield0.02 %
ROCE30.0 %
ROE25.0 %
Face Value 10.0
PEG Ratio1.01

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Balu Forge Industries Ltd

Competitors of Balu Forge Industries Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Incon Engineers Ltd 7.57 Cr. 17.524.8/12.5 0.440.00 %72.7 %162 % 10.0
Hittco Tools Ltd 8.63 Cr. 14.016.0/9.53 4.590.00 %7.27 %5.66 % 10.0
Harshil Agrotech Ltd 412 Cr. 8.1113.7/0.3169.2 1.200.00 %16.4 %13.5 % 1.00
Gujarat Toolroom Ltd 228 Cr. 14.245.9/10.81.94 14.87.04 %179 %170 % 1.00
GTV Engineering Ltd 166 Cr. 531640/39525.3 1250.00 %12.7 %13.5 % 10.0
Industry Average4,658.60 Cr561.3845.25117.410.38%29.61%26.97%6.35

All Competitor Stocks of Balu Forge Industries Ltd

Quarterly Result

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Sales748182536289124112139147161175223
Expenses65697245577210390109114127132158
Operating Profit91210851821223033344365
OPM %12%15%12%15%8%20%17%19%22%22%21%25%29%
Other Income1153531042412
Interest1122334244423
Depreciation0000000001111
Profit before tax91113971717193030354264
Tax %23%26%20%17%34%33%12%13%22%16%18%18%25%
Net Profit7811751115172325283448
EPS in Rs0.951.121.290.890.581.371.832.002.322.482.763.334.40

Last Updated: November 6, 2024, 7:13 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: October 23, 2024, 3:01 pm

MonthMar 2021Mar 2022Mar 2023Mar 2024TTM
Sales142286327560706
Expenses130249277441531
Operating Profit123750119176
OPM %9%13%15%21%25%
Other Income58131010
Interest75111412
Depreciation11123
Profit before tax103951114171
Tax %22%24%23%18%
Net Profit8303994136
EPS in Rs1.113.634.679.1312.97
Dividend Payout %0%3%0%2%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2021-20222022-20232023-2024
YoY Net Profit Growth (%)275.00%30.00%141.03%
Change in YoY Net Profit Growth (%)0.00%-245.00%111.03%

Balu Forge Industries Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 3 years from 2021-2022 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:58%
TTM:52%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:131%
TTM:104%
Stock Price CAGR
10 Years:63%
5 Years:91%
3 Years:81%
1 Year:226%
Return on Equity
10 Years:%
5 Years:%
3 Years:24%
Last Year:25%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 5:45 pm

MonthMar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital698283103109
Reserves775114427804
Borrowings2647524959
Other Liabilities7079121134138
Total Liabilities1712843717121,110
Fixed Assets4242485783
CWIP077130284
Investments00000
Other Assets129235316525743
Total Assets1712843717121,110

Reserves and Borrowings Chart

Cash Flow

MonthMar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +17-5826-18
Cash from Investing Activity +-3-8-21-148
Cash from Financing Activity +-1269-6249
Net Cash Flow24-183

Free Cash Flow

MonthMar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-14.00-10.00-2.0070.00

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 2023Mar 2024
Debtor Days156165235142
Inventory Days66705687
Days Payable1577510578
Cash Conversion Cycle65160186151
Working Capital Days149191191191
ROCE %29%27%30%

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 24Mar 23Mar 22Mar 21
FaceValue10.0010.0010.0010.00
Basic EPS (Rs.)9.804.674.051.85
Diluted EPS (Rs.)9.744.673.611.64
Cash EPS (Rs.)9.334.833.751.28
Book Value[Excl.RevalReserv]/Share (Rs.)53.9023.7119.2711.30
Book Value[Incl.RevalReserv]/Share (Rs.)53.9023.7119.2711.30
Revenue From Operations / Share (Rs.)54.5739.1834.7520.71
PBDIT / Share (Rs.)12.637.495.542.55
PBIT / Share (Rs.)12.437.335.412.38
PBT / Share (Rs.)11.106.074.751.42
Net Profit / Share (Rs.)9.134.673.631.11
NP After MI And SOA / Share (Rs.)9.134.673.631.11
PBDIT Margin (%)23.1319.1115.9312.31
PBIT Margin (%)22.7718.7015.5611.50
PBT Margin (%)20.3315.4813.666.85
Net Profit Margin (%)16.7311.9110.435.36
NP After MI And SOA Margin (%)16.7311.9110.435.36
Return on Networth / Equity (%)16.9419.6818.819.82
Return on Capital Employeed (%)22.0229.0726.6018.14
Return On Assets (%)13.1410.4910.494.44
Long Term Debt / Equity (X)0.040.050.040.13
Total Debt / Equity (X)0.080.250.290.30
Asset Turnover Ratio (%)1.030.991.250.00
Current Ratio (X)3.691.862.001.58
Quick Ratio (X)3.021.641.641.33
Inventory Turnover Ratio (X)6.885.977.520.00
Dividend Payout Ratio (NP) (%)0.000.002.480.00
Dividend Payout Ratio (CP) (%)0.000.002.400.00
Earning Retention Ratio (%)0.000.0097.520.00
Cash Earning Retention Ratio (%)0.000.0097.600.00
Interest Coverage Ratio (X)9.505.938.712.65
Interest Coverage Ratio (Post Tax) (X)7.874.696.742.15
Enterprise Value (Cr.)2056.42774.881018.941459.34
EV / Net Operating Revenue (X)3.672.373.5610.27
EV / EBITDA (X)15.8812.4122.3683.43
MarketCap / Net Operating Revenue (X)3.752.243.4210.12
Retention Ratios (%)0.000.0097.510.00
Price / BV (X)3.793.706.1818.56
Price / Net Operating Revenue (X)3.752.243.4210.12
EarningsYield0.040.050.030.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Balu Forge Industries Ltd as of December 10, 2024 is: 1,343.01

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.

As of December 10, 2024, Balu Forge Industries Ltd is Undervalued by 67.25% compared to the current share price 803.00

Intrinsic Value of Balu Forge Industries Ltd as of December 10, 2024 is: 2,195.85

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • 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.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 10, 2024, Balu Forge Industries Ltd is Undervalued by 173.46% compared to the current share price 803.00

Last 5 Year EPS CAGR: 63.50%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 21.50%, which is a positive sign.
  2. The company has higher reserves (285.40 cr) compared to borrowings (46.60 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (404.20 cr) and profit (77.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 180.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 140.50, 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: 16.73%
      • 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: 22.02% (Industry Average ROCE: 28.32%)
      • 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%: 16.94% (Industry Average ROE: 23.46%)
      • 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): 7.87
      • 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: 3.02
      • 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: 64.4 (Industry average Stock P/E: 32.46)
      • 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: 0.08
      • 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 - Qualitative Analysis

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, Mumbai Maharashtra 400069compliance@baluindustries.com
http://www.baluindustries.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
Mr. Raghavendra Raj MehtaIndependent Director

FAQ

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

The latest intrinsic value of Balu Forge Industries Ltd as on 10 December 2024 is ₹1343.01, which is 67.25% higher than the current market price of ₹803.00. The stock has a market capitalization of 8,765 Cr. and recorded a high/low of ₹890/155 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹804 Cr and total liabilities of ₹1,110 Cr.

What is the Market Cap of Balu Forge Industries Ltd?

The Market Cap of Balu Forge Industries Ltd is 8,765 Cr..

What is the current Stock Price of Balu Forge Industries Ltd as on 10 December 2024?

The current stock price of Balu Forge Industries Ltd as on 10 December 2024 is 803.

What is the High / Low of Balu Forge Industries Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Balu Forge Industries Ltd stocks is 890/155.

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

The Stock P/E of Balu Forge Industries Ltd is 64.4.

What is the Book Value of Balu Forge Industries Ltd?

The Book Value of Balu Forge Industries Ltd is 83.4.

What is the Dividend Yield of Balu Forge Industries Ltd?

The Dividend Yield of Balu Forge Industries Ltd is 0.02 %.

What is the ROCE of Balu Forge Industries Ltd?

The ROCE of Balu Forge Industries Ltd is 30.0 %.

What is the ROE of Balu Forge Industries Ltd?

The ROE of Balu Forge Industries Ltd is 25.0 %.

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