Why Did This Ashish Kacholia Stock Jump 13% Today?

Synopsis: Balue Forge jumped sharply after the company announced that the income tax search concluded on January 13, and no incriminating documents were found or seized, which further strengthen investor’s trust in the company.

The shares of this company engaged in the manufacturing of fully finished and semi-finished forged crankshafts and Forged Components are in focus after it made a key announcement regarding its IT search that started on January 7. In this article, we will dive more into the details.

With a market capitalisation of Rs 5,645 crore, the shares of Balu Forge Industries Ltd reached a day’s high of Rs 498.95 per share, up 13 percent from its previous day’s closing price of Rs 441.30 per share. Over the past five years, the stock has delivered a robust return of 280 percent, outperforming NIFTY 50’s return of 79 percent.

Reason behind the rally

Balu Forge Industries, though a stock exchange filing, announced that the Income Tax Department searched several of their offices and factories on January 7, 2026, and for the same, the process was concluded (ended) on January 13. The company stated that everyone involved, from the promoters to senior management, fully cooperated and provided all documents and responses requested by the officials.

They emphasised that no incriminating documents were found, and nothing was seized, and the company operations would continue as normal. Production remained uninterrupted, and Balu Forge reported that the company’s financial position has not been affected. This announcement boosted the investors’ trust in the company, as investors tend to stay away from such companies which are engaged in any wrong doings.

As per the September 2025 shareholding pattern, the ace investor Ashish Kacholia, along with his investment firm Bengal Finance and Investment Pvt Ltd, holds a total of 2.87 percent stake in the company.

Financials

The revenue from operations for Balu Forge stands at Rs 300 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 223 crores, up by 35 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 29 percent from Rs 233 crore. 

Coming down to its profitability, the company’s net profit stood at Rs 65 crore in Q2 FY26, up from Rs 48 crore in Q2 FY25, which is a growth of 35 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 57 crore, which is a growth of 14 percent.

Coming to its revenue split (H1 FY26), the company derived 38 percent of its sales from the agriculture sector, followed by 19 percent from commercial vehicles, 18 percent from heavy engineering & industrial machinery, 10 percent each from defence and power generation and the remaining 5 percent from oil & gas.

Balu Forge Industries Limited is one of the leading Indian precision engineering company, producing forged and machined components for clients worldwide. Their product range is impressive, spanning from just 1 kg up to 1,500 kg, and reaching lengths of up to 3 meters. Their parts are found in a variety of applications, including cars, trucks, earthmoving equipment, wind turbines, aircraft, defence systems, oil and gas installations, trains, ships, and agricultural machinery.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Why Did This Ashish Kacholia Stock Jump 13% Today? appeared first on Trade Brains.