Balu Forge Industries Ltd Multibagger 2022 Analysis

This article we can explore the possibility of Balu Forge Industries Ltd Ltd as a multibagger 2022 Stock based on Value Investing principles.

Website http://baluindustries.com
CMPRs. 78

About Balu Forge Industries Ltd

Balu has become a name symbolising quality & excellence in the field of crankshaft manufacturing since its inception in 1990. Balu’s in-house capability & state of the art automotive engineering enable them to manufacture any type of crankshaft in a large range of applications namely Automotive, Agricultural, Marine & Industrial. They have developed a very extensive range of forged crankshafts for leading Original Equipment Manufacturers within India and the rest of the world & a strong aftermarket presence in over 80 countries. The ISO/TS16949:2009 accreditation of our units in 2012 by TUV Nord Cert Gmbh added to their competitive edge making Balu one of the very few companies to have this accreditation in the field of manufacturing crankshafts.

Balu is now an avant-garde manufacturer of fully finished and semi-finished forged crankshafts and Forged Components. Company incremental innovation & continuous strive to improve has awarded by making the only company to have the capability to manufacture components conforming to the New Emission Regulations & the New Energy Vehicles

The manufacturing of the crankshafts is done with the latest equipments, instruments, technologies and highly skilled workforce which provide exceptional control over the entire process of manufacturing the crankshafts & strict adherence to Six Sigma & 8D disciplines. Balu is the supplier of choice of major OEM’s not only in India but around the world due to the technological advantage and the highest standards of quality in the industry. All the crankshafts are manufactured to exact O.E specifications and on CNC lines, to ensure precision at every stage.

Balu has continually strived to broaden their manufacturing base and with the acquisition of the state of the art machining lines from Poland in the year 2006 and as recently as 2011 from France, our capability has expanded to produce crankshafts up to 2.5 meters in length and installed capacity has increased to 30,000 fully finished crankshafts per month.

Balu will continuously strive to be a preferred supplier of crankshafts to OEM’s in India and around the world. Balu aims to enhance and grow its reputation as one of the world’s most respected manufacturing companies by exceeding customer expectations, providing an engaging and supportive work environment, and delivering financial success.

While pursuing the above, company will ensure that they establish a robust management system so as to enhance customer’s experience in dealing with company, satisfaction of all stakeholders and due consideration to the environment.

Balu had a humble beginning in the year 1990, in Belgaum, India. The initial set up was for manufacturing of crankshafts for single cylinder & two cylinder with a limited workforce. Within the last decade the company is supplying to OEM companies and the aftermarket presence has since expanded to over 80 countries. In 1990, Balu India was the first company in India to mass-produce Crankshafts suitable for Tractor, Trucks and Passenger car applications. Two decades later Balu has gained an excellent reputation in the world market. The modern era of Balu upholds the reputation of durability by manufacturing Crankshafts only out of Forgings.

Balu Forge Industries Ltd Multibagger 2022 Analysis

Products & Services

  • Agriculture
  • Car Manufacturers
  • Earth moving equipments
  • Industrial Vehicles
  • Railway
  • Gensets
  • Defence
  • E-mobility
  • Off road & On road compressors
  • Refrigeration
  • Oil and Gas

Profit & loss

Balu Forge Industries Ltd Multibagger 2022 Analysis
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Warren Buffett Checklist

FactorValue
Economic moatModerate
GrowthGood
ValuationModerate
DebtModerate
IntegrityModerate

Positives

  • Company is in Growth spree with Capacity Expansions
  • Company has reduced debt over 2 years
  • Company has delivered good profit growth of 30% CAGR
  • Promoter holding Increase of 40% in past 3 years
  • Intrinsic Value Discount above 90%

Negatives

  • Company has high debtors of 166.75 days.
  • Company have Debt Equity Ratio of 0.3
  • Company can face Troubles due to EV Migration of underlying Automobile OEM manufactures

Summary

As per the Expansion & Value Investing grounds the company is having Multibagger Properties.

DISCLAIMER

Logos are Copyright of respective owners. The advice or opinions here is not for public distribution and has been furnished to you solely for your information purpose and must not be reproduced or redistributed to any other person.  Any report is created from Public Source of Information available through Internet from Company website & Other websites & the Research Analyst does not guarantee the Validation of Content in this report

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