ScoreWhy is Balu Forge Industries Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0.10 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 50.08% and Operating profit at 94.19%
3
The company has declared Positive results for the last 12 consecutive quarters
- PAT(Latest six months) At Rs 122.07 cr has Grown at 48.56%
- OPERATING CF(Y) Highest at Rs 148.24 Cr
- NET SALES(Latest six months) At Rs 532.71 cr has Grown at 33.78%
4
With ROE of 19.5, it has a Very Expensive valuation with a 5.7 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -16.44%, its profits have risen by 79.7% ; the PEG ratio of the company is 0.5
5
Despite the size of the company, domestic mutual funds hold only 0.3% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 2.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.44% returns
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Castings & Forgings)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Balu Forge for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Balu Forge
-33.34%
-0.28
57.94%
Sensex
-4.3%
0.43
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
45.80%
EBIT Growth (5y)
80.89%
EBIT to Interest (avg)
11.26
Debt to EBITDA (avg)
0.81
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.04
Tax Ratio
16.03%
Dividend Payout Ratio
0.82%
Pledged Shares
0
Institutional Holding
12.12%
ROCE (avg)
20.36%
ROE (avg)
17.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
20
Industry P/E
32
Price to Book Value
4.19
EV to EBIT
17.19
EV to EBITDA
16.77
EV to Capital Employed
4.08
EV to Sales
4.74
PEG Ratio
0.57
Dividend Yield
0.02%
ROCE (Latest)
22.61%
ROE (Latest)
19.52%
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TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
DEBTORS TURNOVER RATIO(HY)
Highest at 2.85 times
NET SALES(Q)
Highest at Rs 311.11 cr
PBDIT(Q)
Highest at Rs 84.54 cr.
PAT(Q)
Highest at Rs 71.09 cr.
EPS(Q)
Highest at Rs 6.18
-10What is not working for the Company
OPERATING PROFIT TO INTEREST (Q)
Lowest at 15.63 times
INTEREST(Q)
Highest at Rs 5.41 cr
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Here's what is working for Balu Forge
Debtors Turnover Ratio- Half Yearly
Highest at 2.85 times and Grown
each half year in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Net Sales - Quarterly
Highest at Rs 311.11 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 84.54 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 71.09 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 6.18
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Balu Forge
Interest - Quarterly
At Rs 5.41 cr has Grown at 34.24%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 15.63 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 5.41 cr
in the last five quarters and Increased by 34.24 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
