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L.G. Balakrishnan & Bros Ltd.
(LGBBROSLTD)
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Rating:65Neutral
Price Target:
₹1,839.00
▲(3.64% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by solid financial fundamentals (strong balance sheet and steady growth) but is held back by deteriorating free cash flow in the last two periods. Technical indicators add further pressure, as the stock is trading below key moving averages with negative MACD and weak momentum. Valuation is supportive but not compelling enough to offset the cash-flow and technical headwinds.
Positive Factors
Steady Revenue Growth
A sustained multi-year revenue uptrend indicates continued demand for the company’s products and expanding business activity. Growth around 10% in FY2026 provides a durable base for operating leverage, investment, and continued earnings progression over the coming quarters.
Negative Factors
Negative Free Cash Flow
The recent shift to negative free cash flow weakens cash conversion even though operating cash flow remains positive. If sustained, elevated reinvestment or working-capital needs could reduce internally available funds and constrain financial flexibility over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
A sustained multi-year revenue uptrend indicates continued demand for the company’s products and expanding business activity. Growth around 10% in FY2026 provides a durable base for operating leverage, investment, and continued earnings progression over the coming quarters.
Read all positive factors
L.G. Balakrishnan & Bros Ltd. (LGBBROSLTD) vs. iShares MSCI India ETF (INDA)
Market Cap
₹54.56B
Dividend Yield1.29%
Average Volume (3M)2.43K
Price to Earnings (P/E)17.0
Beta (1Y)0.71
Revenue Growth20.77%
EPS Growth4.95%
CountryIN
Employees3,717
SectorGeneral
Sector StrengthN/A
IndustryAuto - Parts
Share Statistics
EPS (TTM)100.42
Shares Outstanding31,892,416
10 Day Avg. Volume2,502
30 Day Avg. Volume2,433
Financial Highlights & Ratios
PEG Ratio3.47
Price to Book (P/B)2.43
Price to Sales (P/S)1.70
P/FCF Ratio-463.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)105.8
Revenue Forecast (FY)₹34.89B
L.G. Balakrishnan & Bros Ltd. Business Overview & Revenue Model
Company Description
L.G. Balakrishnan & Bros Limited (LGB) is a manufacturer and distributor of chains, sprockets, and various metal-formed parts, primarily catering to the automotive industry. The company serves both the Indian domestic market and international clie...
How the Company Makes Money
L.G. Balakrishnan & Bros Ltd. makes money mainly by manufacturing and selling power transmission components (such as chains, sprockets, and associated assemblies). Revenue is generated through (1) sales to automotive original equipment manufacture...
L.G. Balakrishnan & Bros Ltd. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 32.17B | 30.76B | 25.78B | 23.46B | 22.03B | 21.02B |
| Gross Profit | 11.28B | 10.96B | 14.49B | 12.21B | 11.77B | 8.49B |
| EBITDA | 5.40B | 5.55B | 4.15B | 4.52B | 4.26B | 4.23B |
| Net Income | 3.19B | 3.19B | 3.02B | 2.71B | 2.52B | 2.45B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 29.95B | 25.70B | 22.37B | 18.73B | 17.09B |
| Cash, Cash Equivalents and Short-Term Investments | 2.60B | 2.60B | 4.15B | 3.40B | 3.46B | 2.87B |
| Total Debt | 0.00 | 2.31B | 1.57B | 1.15B | 1.04B | 1.04B |
| Total Liabilities | -21.56B | 8.39B | 6.63B | 5.93B | 5.05B | 5.74B |
| Stockholders Equity | 21.56B | 21.54B | 19.04B | 16.41B | 13.65B | 11.32B |
Cash Flow | ||||||
| Free Cash Flow | -5.56M | -112.86M | -118.33M | 1.81B | 859.08M | 1.55B |
| Operating Cash Flow | 1.25B | 3.60B | 2.88B | 3.43B | 1.67B | 2.02B |
| Investing Cash Flow | -880.60M | -3.22B | -3.11B | -2.99B | -1.57B | -1.82B |
| Financing Cash Flow | -358.27M | -290.85M | 177.44M | -400.06M | -577.93M | -227.76M |
L.G. Balakrishnan & Bros Ltd. Technical Analysis
Positive
1774.35
Price Trends
1590.84
Positive
1585.05
Positive
1690.24
Positive
Market Momentum
42.15
Negative
63.65
Neutral
62.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LGBBROSLTD, the sentiment is Positive. The current price of 1774.35 is above the 20-day moving average (MA) of 1671.25, above the 50-day MA of 1590.84, and above the 200-day MA of 1690.24, indicating a bullish trend. The MACD of 42.15 indicates Negative momentum. The RSI at 63.65 is Neutral, neither overbought nor oversold. The STOCH value of 62.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LGBBROSLTD.
L.G. Balakrishnan & Bros Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹379.33B | 39.05 | ― | 0.43% | 29.35% | 12.93% | |
68 Neutral | ₹133.15B | 67.49 | ― | 0.17% | 14.66% | 47.32% | |
65 Neutral | ₹54.56B | 17.04 | ― | 1.29% | 20.77% | 4.95% | |
61 Neutral | ₹238.45B | 69.73 | ― | 0.37% | 18.48% | 11.21% | |
60 Neutral | ₹58.38B | 27.41 | ― | 0.34% | 19.94% | 5.14% | |
57 Neutral | ₹54.50B | 33.33 | ― | 0.65% | 17.47% | 39.52% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:LGBBROSLTD
L.G. Balakrishnan & Bros Ltd.
1,710.60
370.56
27.65%
IN:ENDURANCE
Endurance Technologies Ltd.
2,696.75
-156.65
-5.49%
IN:GABRIEL
Gabriel India Limited
1,345.45
48.58
3.75%
IN:SSWL
Steel Strips Wheels Ltd
371.25
128.21
52.75%
IN:VARROC
Varroc Engineering Limited
871.50
251.77
40.62%
IN:WHEELS
Wheels India Limited
2,230.55
1,450.76
186.05%
L.G. Balakrishnan & Bros Ltd. Corporate Events
L.G. Balakrishnan & Bros Posts Q1 Results, Sets Up Subsea JV and Vietnam Subsidiary
Jul 31, 2026
L.G. Balakrishnan Bros Ltd. has reported its audited standalone and consolidated financial results for the quarter ended June 30, 2026, with statutory auditors issuing an unmodified opinion. The company will publish extracts of these results in E...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.