ScoreWhy is Balu Forge Industries Ltd ?
1
Flat results in Dec 25
- OPERATING PROFIT TO INTEREST (Q) Lowest at 15.63 times
- INTEREST(Q) Highest at Rs 5.41 cr
2
Stock is technically in a Mildly Bearish range
- The technical trend has deteriorated from Sideways on 11-May-26 and has generated -12.25% returns since then
- A key technical factor - Bollinger Band has been Bearish since 11 May 2026
3
With ROE of 19.5, it has a Very Expensive valuation with a 4.6 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 -26.33%, its profits have risen by 51% ; the PEG ratio of the company is 0.6
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -1.74% over the previous quarter and collectively hold 10.93% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 0.10% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.33% 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
-29.8%
-0.53
49.62%
Sensex
-4.95%
-0.49
12.94%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
40.36%
EBIT Growth (5y)
68.42%
EBIT to Interest (avg)
12.08
Debt to EBITDA (avg)
0.78
Net Debt to Equity (avg)
0.04
Sales to Capital Employed (avg)
1.00
Tax Ratio
15.40%
Dividend Payout Ratio
0.82%
Pledged Shares
1.40%
Institutional Holding
10.93%
ROCE (avg)
20.07%
ROE (avg)
18.05%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
21
Industry P/E
32
Price to Book Value
3.41
EV to EBIT
18.99
EV to EBITDA
18.36
EV to Capital Employed
3.32
EV to Sales
4.97
PEG Ratio
1.45
Dividend Yield
0.02%
ROCE (Latest)
17.47%
ROE (Latest)
16.24%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend0What is working for the Company
NO KEY POSITIVE TRIGGERS
-19What is not working for the Company
INTEREST(Latest six months)
At Rs 10.19 cr has Grown at 62.78%
ROCE(HY)
Lowest at 18.47%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 12.53 times
DEBT-EQUITY RATIO(HY)
Highest at 0.10 times
NET SALES(Q)
At Rs 263.55 cr has Fallen at -5.3% (vs previous 4Q average
PBDIT(Q)
Lowest at Rs 59.91 cr.
OPERATING PROFIT TO NET SALES (Q)
Lowest at 22.73%
PBT LESS OI(Q)
Lowest at Rs 51.95 cr.
Loading Valuation Snapshot...
Here's what is not working for Balu Forge
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 51.95 cr has Fallen at -28.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 72.77 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Latest six months
At Rs 10.19 cr has Grown at 62.78%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 12.53 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Sales - Quarterly
At Rs 263.55 cr has Fallen at -5.3% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 278.37 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 59.91 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Lowest at 22.73%
in the last five quartersMOJO Watch
Company's efficiency has deteriorated
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs 51.95 cr.
in the last five quartersMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.10 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 23.47 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
