Shares of Balu Forge Industries Limited experienced a significant rebound on Tuesday, January 13. The stock surged by over thirteen percent in intraday trading. This sharp rise effectively snapped a prolonged losing streak that had lasted for nine consecutive sessions. Market observers linked the recovery directly to the conclusion of income tax department searches at the company's facilities.
Stock Price Recovers After Tax Operation
Balu Forge's share price jumped impressively to reach an intraday high of ₹499.40. This represented a gain of 13.16 percent from its previous closing price of ₹441.30. The rally managed to recoup nearly half of the losses incurred during the recent downturn. Over those nine days of decline, the BSE Smallcap stock had fallen by approximately twenty-seven percent.
Income Tax Department Search Details
The company officially announced the details of the income tax operation earlier today. Officials from the Income Tax Department conducted a search under the Income Tax Act of 1961. This action took place at several of Balu Forge's offices and manufacturing units starting on January 7. The search operation concluded on Tuesday.
In its regulatory filing, Balu Forge stated that the company, its promoters, and key managerial personnel provided full cooperation to the officials. All requested documents, clarifications, and details were supplied promptly. Importantly, the company reported that no incriminating documents were found or seized by the department during the entire operation.
The filing further clarified that business operations and production continued normally throughout the search period. The company asserted that the search did not impact its daily activities. Consequently, Balu Forge does not anticipate any material adverse effect on its financial position from this event. The company remains ready to provide any additional clarification or information if required.
"At Balu Forge Industries Limited, we adhere to the highest standards of ethical conduct and legal compliance," the company stated. "Our commitment to transparency and belief in the due process of law remain unwavering."
Ashish Kacholia's Investment in Balu Forge
Prominent investor Ashish Kacholia maintains a notable stake in Balu Forge Industries. The company forms part of his personal investment portfolio. It is also held by his investment firm, Bengal Finance and Investment.
Shareholding data for the September quarter reveals specific details. In his personal capacity, Ashish Kacholia held 18,65,933 shares of Balu Forge. This holding represented a 1.64 percent stake in the company. Through Bengal Finance and Investment, he held an additional 14,00,000 shares, amounting to a 1.23 percent stake as of the second quarter of FY26. The shareholding pattern for the December quarter has not been released yet.
Long-Term Performance of Balu Forge Shares
Despite the recent volatility and today's sharp recovery, Balu Forge shares have faced pressure over the past year. The stock has declined by twenty-six percent in the last twelve months. However, the longer-term performance tells a different and more positive story.
Historical data from the Bombay Stock Exchange highlights substantial multibagger gains over extended periods. Balu Forge shares have rallied by an impressive 515 percent over the past three years. The five-year return stands at 269 percent. Most remarkably, the stock has delivered an 804 percent gain over the last decade, showcasing its long-term growth potential.
Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions.
