Mumbai: Shares of Balu Forge Ltd. saw a strong rebound on Tuesday, January 13, rising as much as 10 percent during the trading session. This sharp jump helped the stock snap an eight-day losing streak. It also marked the company’s first positive trading day in 2026 after a weak start to the year.
Stock Had Fallen 27 Percent
Before Tuesday’s recovery, Balu Forge shares had been under heavy selling pressure. Over the previous eight trading sessions, the stock had lost nearly 27 percent of its value. Investor sentiment had remained weak during this period due to uncertainty surrounding a tax investigation.
Income Tax Probe Concludes
In a regulatory filing, Balu Forge confirmed that the income tax department had completed its search operation. The probe was carried out under the Income Tax Act, 1961, at some of the company’s offices and manufacturing units. The search began on January 7 and officially concluded on January 13.
Company Claims Full Cooperation
The company stated that it, along with its promoters and key managerial personnel, fully cooperated with tax officials during the investigation. According to the filing, all documents, clarifications, and details requested by authorities were provided without delay.
No Wrongdoing Found
Balu Forge clarified that no incriminating documents were found or seized during the search operation. This statement appeared to reassure investors, leading to renewed buying interest in the stock. The company emphasized that the probe did not uncover any issues that could harm its business.
Operations Remain Normal
The company also confirmed that its day-to-day business activities and production were not affected by the tax search. It added that there is no material impact on its financial position or future performance as a result of the probe.
Business Overview
Balu Forge is engaged in the manufacturing of crankshafts. Its products are used across multiple sectors, including automotive, agricultural equipment, marine engines, and industrial machinery. The company serves both domestic and international markets.
Current Market Status
At the time of reporting, shares of Balu Forge were trading around 7.8 percent higher at Rs 475.9. The sharp recovery suggests that clarity around the tax probe has helped restore investor confidence, at least in the short term.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to risks. Readers should consult certified financial advisors before making investment decisions.
