Shares of defence component manufacturer Balu Forge witnessed a sharp sell-off on Wednesday, tumbling as much as 11% to an intraday low of ₹521. This decline extended the stock's losing streak to the sixth consecutive trading session, with no immediate fundamental triggers identified for the steep fall.
Heavy Selling Pressure Drives Volumes
The session was marked by intense selling activity, leading to trading volumes soaring well above average levels. Data from the National Stock Exchange (NSE) revealed that approximately 50.66 lakh shares were traded, resulting in a hefty turnover of around ₹248.59 crore. On the Bombay Stock Exchange (BSE), the activity was even more pronounced relative to recent averages, with 10.20 lakh shares changing hands by 3:10 PM, compared to a two-week average of just 18,000 shares.
Recent Business Milestone: Belgaum Defence Facility
The price drop comes despite a significant recent business development announced by the company. In December 2025, Balu Forge commenced operations at its new greenfield facility in Belgaum, Karnataka. The highlight was the launch of a fully indigenously developed empty shell production line, a key milestone for India's defence manufacturing sector.
This automated line, powered by FANUC Robotics, is one of the country's first entirely home-grown systems of its kind. It boasts an annual capacity of 360,000 large-calibre ammunition shells and features advanced forging and machining technologies for defence-grade projectiles.
"This advanced empty shell production line opens a new category for us, reflecting our outlook to diversify our capability," said Trimaan Chandock, Executive Director at Balu Forge. The facility is initially manufacturing 155 mm shells but is configured to produce other variants like 120 mm, 105 mm, and 81 mm shells, enhancing the company's capability to supply high-precision components for critical military applications.
Ashish Kacholia's Stake and Share Price Trend
The stock is part of the portfolio of renowned investor Ashish Kacholia. According to the latest shareholding pattern available on BSE for September 2025, Kacholia holds a 1.64% stake in Balu Forge, aggregating to 18,65,933 shares.
The near-term trend for Balu Forge shares has been decidedly bearish. The stock has shed 13.48% in the past five sessions and is down 12% over the past month. Taking a broader view, the counter has descended 24% in the last six months and has corrected a significant 31% over the past one year.
The stock, listed on both BSE and NSE, had hit a 52-week high of ₹784 on June 12, 2025, and a 52-week low of ₹429 on March 3, 2025. Wednesday's crash brings it closer to the lower end of that range, reflecting sustained selling pressure in the absence of fresh positive catalysts.
