Balu Forge Ind gains after securing order from middle east tractor manufacturer
3 min read . Updated: 15 Mar 2023, 03:43 PM IST
Premium- With a market valuation of Rs. 783.63 Cr., Balu Forge Industries Ltd. (BFIL) is a small-cap company with operations in the industrial industry.
With a market valuation of Rs. 783.63 Cr., Balu Forge Industries Ltd. (BFIL) is a small-cap company with operations in the industrial industry. The company is engaged in the manufacturing of fully finished and semi-finished crankshafts and Forged Components have secured order to supply Powertrain Sub-assemblies to a tractor manufacturer based out of the Middle East.
A variety of powertrain sub-assemblies will be supplied by BFIL in accordance with the contract's terms. A variety of tractors will be powered by these engines, which are manufactured using these components. The agreement is an assurance of the excellence of BFIL's products and its dedication to delivering cutting-edge solutions that satisfy the changing requirements of the agricultural business.
The trial order calls for the provision of 10,000 sets of sub-assemblies initially, with the potential to boost that number to more than 50,000 yearly. BFIL said in a stock exchange filing that it has already started the supply under the said contract and expects to generate further revenues in upcoming quarters.
This order accomplishment is in line with the management's broad strategic aims, which include strengthening BFIL's product lineup and extending its market presence internationally. This is BFIL's entry into the powertrain sub assembly manufacturing & supply market and will help the firm lay a solid foundation in preparation for the addition of sub assemblies for new energy vehicles to its product line in the near future.
Commenting on the announcement, the management team of Balu Forge Industries Ltd, stated: "We are thrilled to have been selected as the supplier of Powertrain sub-assemblies to the tractor manufacturer based out of the middle east. This contract is a testament to our expertise in the agricultural industry and our commitment to delivering critical and advanced products. BFIL has been at the forefront of precision component manufacturing for many years, and this order further cements its position as a trusted supplier to the agricultural industry.
“We are confident that our half engine and assemblies will meet the standards of our customer and exceed their expectations and accordingly help us build a strong, long term successful partnership with them. On the financial front, the order is expected to support our long term growth plans and yield healthy EBITDA margins," the management further added.
“Further, BFIL remains committed in delivering the best possible products and services to its customers, and this order is reflective of its ongoing efforts to achieve excellence in every aspect of its business from product designing to execution. The company looks forward to innovate and grow, and to serving its customers with the highest levels of quality, reliability, and customer service," said the management of Balu Forge Industries Ltd. (BFIL).
The shares of Balu Forge Industries closed today on the BSE at ₹93.90 apiece level, up by 4.71% from the previous close of ₹89.68. The stock recorded a total volume average of 2,22,870 shares and a deliverable volume average of 1,49,769 shares. In the last 1 year, the stock has fallen 22.62% and on a YTD basis it has gained 41.31% so far in 2023. The stock touched a 52-week-high of ₹126.45 on (07/04/2022) and a 52-week-low of ₹52.00 on (26/08/2022).