Ashish Kacholia-backed Balu Forge shares bounce back 13% after sharp YTD fall

After witnessing a sharp fall of nearly 27% over the last six sessions, shares of ace investor Ashish Kacholia-backed Balu Forge Industries surged as much as 13% intraday on Tuesday following a company clarification regarding the conclusion of a recent Income Tax Department search.

In an exchange filing, Balu Forge stated that the search operation conducted by the Income Tax Department has been concluded, and the company emphasised that no incriminating documents or unaccounted assets were found during the process.

It also clarified that there has been no impact on the company’s business operations, and production has continued as usual during the entire search period.

The recovery in the stock price comes as a relief to investors, especially considering that Ashish Kacholia, one of the most prominent names in the Indian equity market, holds a stake in the company.

As per the most recent shareholding pattern, Ashish Kacholia holds 18,65,933 shares of the company, representing a 1.64% equity stake.

The stock had come under pressure in the previous week amid an overall negative broader market sentiment.Technical indicators had already pointed to an oversold condition, with the Relative Strength Index (RSI) slipping below 30, often interpreted by traders as a signal of a potential rebound.With Tuesday’s rally, the stock appears to be staging a comeback from its recent lows. Market participants are now likely to closely watch whether the uptrend sustains as the uncertainty surrounding the tax search has been lifted.

As of 12.13 pm, Balu Forge shares were trading 11.7% higher on the BSE at Rs 492.95.

Over the past one year, the shares of Balu Forge have declined by 23.37%, reflecting sustained pressure over a longer timeframe. On a year-to-date basis, the stock is down 17.92%, indicating that the weakness has carried into the current year as well.

The sell-off has been sharper in the medium term, with the stock falling 26.04% over the last six months and 24.64% in the past three months. More recently, the downtrend has intensified further, as the stock has slipped 22.60% over the last one month, underscoring the persistent bearish sentiment surrounding the counter.

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