L.G. Balakrishnan & Bros Ltd. (LGBBROSLTD) AI Stock Analysis

L.G. Balakrishnan & Bros Ltd.

(NSE:LGBBROSLTD)

Select Model

Rating:65Neutral

Price Target:INR 1,798.00▲(7.49% 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 GrowthThe multi-year revenue uptrend indicates sustained demand for the company’s automotive power-transmission products. Continued growth expands the operating base, supports scale benefits, and provides a durable foundation for earnings over the next several quarters.

Negative Factors

Negative Free Cash FlowThe shift from consistently positive free cash flow to negative generation for two periods weakens cash conversion and reduces internally available funding. If sustained, elevated reinvestment or working-capital needs could constrain financial flexibility despite positive operating inflows.

L.G. Balakrishnan & Bros Ltd. (LGBBROSLTD) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 53.36B
Dividend Yield: 1.31%
Average Volume (3M): 2,038
Price to Earnings (P/E): 16.7
Beta (1Y): 0.80
Revenue Growth: 20.77%
EPS Growth: 4.95%
Country: India
Employees: 3,717
Sector: General
Sector Strength: 55
Industry: Auto - Parts

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 clients...

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 manufacturers...

L.G. Balakrishnan & Bros Ltd. Financial Statement Overview

Summary

Strong balance sheet (high score driven by rising equity and low leverage historically) and steady multi-year revenue/earnings growth support a solid financial profile. The main offset is weaker cash conversion: free cash flow turned slightly negative in FY2025–FY2026 despite positive operating cash flow, raising durability/working-capital or reinvestment questions.

Income Statement

78Positive

Balance Sheet

86Very Positive

Cash Flow

62Positive

Financial statement breakdown
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	4.51B	4.27B	4.23B
Net Income	3.19B	3.19B	3.02B	2.71B	2.52B	2.45B
Balance Sheet
Total Assets	0	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	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

Technical Analysis SentimentNegative

Last Price1672.75

Price Trends

50DMA1692.66Negative

100DMA1615.24Positive

200DMA1669.39Positive

Market Momentum

MACD-2.83Positive

RSI47.85Neutral

STOCH34.28Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LGBBROSLTD, the sentiment is Negative. The current price of 1672.75 is below the 20-day moving average (MA) of 1683.43, below the 50-day MA of 1692.66, and above the 200-day MA of 1669.39, indicating a neutral trend. The MACD of -2.83 indicates Positive momentum. The RSI at 47.85 is Neutral, neither overbought nor oversold. The STOCH value of 34.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LGBBROSLTD.

L.G. Balakrishnan & Bros Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:LGBBROSLTD against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:GABRIEL	70Outperform	INR 251.46B	73.80	―	0.35%	24.12%	19.76%
IN:SSWL	69Neutral	INR 77.66B	26.40	―	0.61%	32.78%	53.55%
IN:VARROC	68Neutral	INR 117.48B	59.30	―	0.20%	14.66%	47.32%
IN:LGBBROSLTD	65Neutral	INR 53.35B	16.66	―	1.31%	20.77%	4.95%
IN:ENDURANCE	62Neutral	INR 319.65B	32.97	―	0.51%	29.35%	12.93%
IN:WHEELS	55Neutral	INR 49.68B	30.45	―	0.71%	17.47%	39.52%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

IN:LGBBROSLTD and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:LGBBROSLTD	L.G. Balakrishnan & Bros Ltd.	1672.75	83.28	5.24%
IN:ENDURANCE	Endurance Technologies Ltd.	2272.45	-581.85	-20.38%
IN:GABRIEL	Gabriel India Limited	1418.85	135.97	10.60%
IN:SSWL	Steel Strips Wheels Ltd	493.80	265.25	116.06%
IN:VARROC	Varroc Engineering Limited	768.90	147.32	23.70%
IN:WHEELS	Wheels India Limited	2033.45	1126.64	124.24%

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...

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.

Date of analysis: Aug 09, 2026

L.G. Balakrishnan & Bros Ltd. AI Stock Analysis