Balu Forge Industries Limited
Balu Forge Industries Limited Fundamental Analysis
Balu Forge Industries Limited (BALUFORGE.NS) shows strong financial fundamentals with a PE ratio of 19.29, profit margin of 22.98%, and ROE of 23.97%. The company generates $11.4B in annual revenue with strong year-over-year growth of 66.98%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.3/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze BALUFORGE.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBALUFORGE.NS demonstrates superior asset utilization.
Valuation Score
ModerateBALUFORGE.NS shows balanced valuation metrics.
Growth Score
ExcellentBALUFORGE.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentBALUFORGE.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateBALUFORGE.NS maintains healthy but balanced margins.
Key Financial Metrics
Is BALUFORGE.NS Expensive or Cheap?
P/E Ratio
BALUFORGE.NS trades at 19.29 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BALUFORGE.NS's PEG of 4.83 indicates potential overvaluation.
Price to Book
The market values Balu Forge Industries Limited at 3.95 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.32 times EBITDA. This signals the market has high growth expectations.
How Well Does BALUFORGE.NS Make Money?
Net Profit Margin
For every $100 in sales, Balu Forge Industries Limited keeps $22.98 as profit after all expenses.
Operating Margin
Core operations generate 27.57 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $23.97 in profit for every $100 of shareholder equity.
ROA
Balu Forge Industries Limited generates $16.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Balu Forge Industries Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Balu Forge Industries Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
BALUFORGE.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.83
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.24
vs 25 benchmark
ROA
Return on assets percentage
0.17
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How BALUFORGE.NS Stacks Against Its Sector Peers
| Metric | BALUFORGE.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.29 | 26.71 | Better (Cheaper) |
| ROE | 23.97% | 1311.00% | Weak |
| Net Margin | 22.98% | -29317.00% (disorted) | Strong |
| Debt/Equity | 0.07 | 0.75 | Strong (Low Leverage) |
| Current Ratio | 2.67 | 10.53 | Strong Liquidity |
| ROA | 16.79% | -1537638.00% (disorted) | Strong |
BALUFORGE.NS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Balu Forge Industries Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
152741.82%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
169070.27%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
112137.49%
Industry Style: Cyclical, Value, Infrastructure
High Growth