Small-Cap Stock in Which Ashish Kacholia Is Continuously Selling Stake

Synopsis: Small-cap stock Balu Forge Inadustries Ltd is in focus as Ashish Kacholia trimmed his stake from 2.16% in September 2023 to 1.16% by February 2026. Separately, his associate, Bengal Finance and Investment Pvt Ltd, reduced its holding from 2.16% to 1.19% over the same period.

The shares of the Small-Cap company, specialising in the manufacturing of fully finished and semi-finished forged crankshafts and forged components for a diverse range of industries, are in the spotlight after Ashish Kacholia continuously trims stake.

With a market capitalization of Rs. 5,205.11 Crores on the day’s trade, the shares of Balu Forge Industries Ltd rose by 0.9 percent after making a high of Rs. 470.60 compared to its previous closing price of Rs. 466.40.

What Happened 

Balu Forge Industries Ltd, engaged in the manufacturing of fully finished and semi-finished forged crankshafts and forged components for a diverse range of industries, is in the spotlight as the Ace Investor continuously trims his stake in it.

Ashish Kacholia has been steadily reducing his stake in the company over the past few years. Starting at 2.16% in September 2023, his holding decreased slightly to 2.11% by December 2023. The trend continued through 2024, with his stake dropping to 1.82% in September and 1.73% in December.

The gradual reduction persisted into 2025, as his ownership fell to 1.68% in March and further to 1.64% by June. Most recently, as of February 2026, Kacholia’s stake in the company stands at 1.16%, reflecting a consistent pattern of trimming over time.

Also, Ashish Kacholia, through his associate Bengal Finance and Investment Pvt Ltd, has been gradually reducing his stake in the company. His holding declined from 2.16% in September 2023 to 2.11% by December 2023, and further to 1.74% in September 2024. By December 2024, his stake had dropped to 1.60%.

The downward trend continued over the next year, with his ownership falling to 1.23% by June 2025. Most recently, as of February 2026, Kacholia’s stake under Bengal Finance and Investment Pvt Ltd stands at 1.19%, reflecting a consistent pattern of trimming over this period.

Financials

The company’s revenue rose by 21.63 percent from Rs. 256 crores in December 2024 to Rs. 311 crores in December 2025. Meanwhile, Net profit rose from Rs. 59 crores to Rs. 71 crores in the same period.

The company demonstrates strong operational efficiency, reflected in a ROCE of 31.3% and a ROE of 25.4%, indicating effective use of capital and equity to generate returns. Its debt-to-equity ratio of 0.07 highlights minimal leverage, while a PEG ratio of 0.23 suggests the stock is undervalued relative to its earnings growth. 

The company’s P/E ratio of 21.0x, compared to the industry average of 25.5x, suggests that the stock is trading at a relative discount, potentially offering attractive value for investors. On the operational side, the reduction in debtor days from 169 to 129 demonstrates improved efficiency in cash collection, while the decrease in working capital requirements from 145 to 114 days indicates better liquidity management

Balu Forge Industries Limited, founded by Mr Prehlad Singh Chandock, is a leading Indian precision engineering company specialising in forged and machined components for a wide range of global industries. The company offers products ranging from 1 kg to 1,000 kg and up to 3 meters in length, catering to sectors such as automotive, industrial vehicles, earthmoving equipment, wind energy, aerospace, defence, oil and gas, railways, marine, and agriculture.

The company operates fully integrated forging and machining facilities at its 46+ acre campus in Belgaum, Karnataka, equipped with high-capacity hydraulic hammers, forging presses, CNC machining units, and in-house metallurgical labs and tool rooms. These capabilities ensure consistent precision, quality, and reliability across its product portfolio.

Balu Forge Industries, as of 9MFY26, generates revenue across diverse sectors, with Agriculture contributing 36%, Commercial Vehicles 20%, Heavy Engineering & Industrial Machinery 17%, Defence 12%, Power Generation 10%, and Oil & Gas 5%, reflecting a well-diversified business portfolio.

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