This Ashish Kacholia stock jumps 12% to hit new 52-week highs; here's why

Shares of Balu Forge Industries surged in Tuesday's trade to hit new 52-week highs as the company mulls fund-raising plans. The company board is likely to meet in near-term to consider the fundraising plans, the company said in an exchange filing on Tuesday.

The company board of Balu Forge Industries is scheduled to meet on Monday, September 4, 2023 to consider the proposal for fund raising by way of preferential issue/private placement of convertible securities to the promoter and promoter group category of investors, said the exchange filing.

"The board of directors will also work on the determination of issue price subject to such regulatory approvals as may be required, including the approval of shareholders of the company," it added. "The company board will also finalize the day, date, time and notice for the annual general meeting of the company for the financial year ended 2022-23 and to seek shareholders' approval."

Following the announcement, shares of Balu Forge Industries surged about 12 per cent to Rs 201 on Tuesday, hitting its new 52-week high, with a total market capitalization of close to Rs 1,950 crore. The scrip had settled at Rs 181.65 in the previous trading session on Monday.

Shares of Balu Forge Industries have surged about 280 per cent from its 52-week low at Rs 53 hit a year ago. The stock has almost doubled in the last three months, while it has gained more than 135 per cent in the last six-month period. The stock has rallied about 600 per cent from its Covid-19 lows.

Balu Forge Industries' consolidated net profit jumped about 35 per cent to Rs 10.31 crore for the quarter ended on June 30, 2023, which was Rs 7.66 crore in the year ago period. Its revenue from operations increased about 15 per cent to Rs 69.63 crore during the period under review.

Seasoned investors Ashish Kacholia owned 21,65,500 equity shares, or 2.23 per cent stake, in Balu Forge Industries as of June 30, 2023, the latest shareholding pattern of the company showed. His stake in the company is worth around Rs 43.5 crore.

Incorporated in 1989, Balu Forge Industries is engaged in the manufacturing of fully finished and semi-finished crankshafts and forged components. It has the capability to manufacture components conforming to both new emission regulations and the new energy vehicles.

Also see: Hot stocks on August 29, 2023: Suzlon Energy, Zomato, Gokaldas Exports, SJVN and more

Also read: Paytm, ITC, Zomato, Axis Bank shares: As foreign inflows fall, here's how FPI favs fared in August