Shares of Balu Forge Industries jumped more than 11 per cent during the early trade on Wednesday after the company bagged an order to supply powertrain sub-assemblies from a tractor manufacturer based out of the Middle East. However, it did not disclose the name of the company.
Under the terms of the contract, Balu Forge Industries will supply a range of powertrain sub-assemblies. These components will be used in the production of engines that will power a variety of tractors, the company said in its statement.
Balu Forge Industries’ shares rallied more than 11 per cent to Rs 99.85 on Wednesday, before giving up their gains partially to trade at Rs 94.23 at 11.00 am. The scrip had settled at Rs 89.68 on Tuesday.
Balu Forge Industries is a forging and machining company based out of India, which has delivered a return of 45 per cent in the year 2022 so far. The stock is up 25 per cent in the last six months and has jumped about 15 per cent in the last one month.
The trial order initially comprises supplying 10,000 sets of sub-assemblies and there is scope to increase the same to over 50,000 annually. BFIL has already started the supply under the said contract and expects to generate further revenues in upcoming quarters, the company said.
This order win is in line with the overall strategic initiatives taken by the management on expanding its presence in the international market while increasing the suite of product offerings by Balu Forge Industries.
Incorporated in 1989, Balu Forge Industries is engaged in the manufacturing of fully-finished and semi-finished crankshafts and forged components. It has the capability to manufacture components conforming to both new emission regulations and new energy vehicles.
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