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

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L.G. Balakrishnan & Bros Ltd.

(NSE:LGBBROSLTD)

Select Model

Rating:75Outperform

Price Target:INR 1,868.00▲(10.39% Upside)

Action:upgraded

Date:11/10/26

Strong financial performance and an excellent balance sheet are the primary strengths. These are offset by pressured free cash flow, mixed-to-weak technical momentum, and only moderate valuation support.

Positive Factors

Balance Sheet StrengthMeaningful equity and asset growth alongside historically low leverage gives the company financial resilience and capacity to support operations. This strengthens its ability to fund expansion, absorb business fluctuations, and preserve strategic flexibility over the next several quarters.

Negative Factors

Negative Free Cash FlowThe shift from strong positive free cash flow in FY2021-FY2024 to slightly negative generation in the latest two years indicates higher reinvestment or working-capital demands. If sustained, this could limit internally funded growth and reduce capital-allocation flexibility.

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

Market Cap: INR 53.85B
Dividend Yield: 1.30%
Average Volume (3M): 1,822
Price to Earnings (P/E): 16.9
Beta (1Y): 0.62
Revenue Growth: 21.09%
EPS Growth: -1.11%
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 profitability, very low leverage, rising equity, and solid returns on equity support a high score. Cash flow is the main weakness because free cash flow turned negative due to elevated capital expenditure.

Income Statement

88Very Positive

Balance Sheet

92Very Positive

Cash Flow

72Positive

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	33.79B	30.76B	25.78B	23.46B	22.03B	21.02B
Gross Profit	11.83B	10.96B	14.49B	12.21B	11.77B	8.49B
EBITDA	5.35B	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	33.13B	29.95B	25.70B	22.37B	18.73B	17.09B
Cash, Cash Equivalents and Short-Term Investments	3.19B	2.60B	4.15B	3.40B	3.46B	2.87B
Total Debt	2.85B	2.31B	1.57B	1.15B	1.04B	1.04B
Total Liabilities	10.37B	8.39B	6.63B	5.93B	5.05B	5.74B
Stockholders Equity	22.73B	21.54B	19.04B	16.41B	13.65B	11.32B
Cash Flow
Free Cash Flow	0	-112.86M	-118.33M	1.81B	859.08M	1.55B
Operating Cash Flow	0	3.60B	2.88B	3.43B	1.67B	2.02B
Investing Cash Flow	0	-3.22B	-3.11B	-2.99B	-1.57B	-1.82B
Financing Cash Flow	0	-290.85M	177.44M	-400.06M	-577.93M	-227.76M

L.G. Balakrishnan & Bros Ltd. Technical Analysis

Technical Analysis SentimentPositive

Last Price1692.25

Price Trends

50DMA1699.52Negative

100DMA1631.92Positive

200DMA1663.76Positive

Market Momentum

MACD-0.86Negative

RSI51.38Neutral

STOCH54.99Neutral

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 1692.25 is above the 20-day moving average (MA) of 1684.69, below the 50-day MA of 1699.52, and above the 200-day MA of 1663.76, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 51.38 is Neutral, neither overbought nor oversold. The STOCH value of 54.99 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

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:ENDURANCE	75Outperform	INR 354.65B	35.14	―	0.45%	31.99%	15.15%
IN:LGBBROSLTD	75Outperform	INR 53.79B	16.87	―	1.30%	21.09%	-1.11%
IN:GABRIEL	74Outperform	INR 314.65B	72.90	―	0.34%	24.12%	19.76%
IN:SSWL	69Neutral	INR 90.13B	30.34	―	0.53%	32.78%	53.55%
IN:VARROC	61Neutral	INR 126.86B	75.69	―	0.18%	21.74%	21.53%
IN:WHEELS	57Neutral	INR 59.82B	30.92	―	0.60%	24.45%	54.55%
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.	1692.25	-111.35	-6.17%
IN:ENDURANCE	Endurance Technologies Ltd.	2539.20	-132.35	-4.95%
IN:GABRIEL	Gabriel India Limited	1553.10	536.25	52.74%
IN:SSWL	Steel Strips Wheels Ltd	567.35	363.18	177.89%
IN:VARROC	Varroc Engineering Limited	838.45	193.52	30.01%
IN:WHEELS	Wheels India Limited	2426.10	1545.23	175.42%

L.G. Balakrishnan & Bros Ltd. Corporate Events

L.G. Balakrishnan & Bros Publishes Audited September Results

Nov 2, 2026

L.G. Balakrishnan & Bros Ltd. announced that its audited financial results for the quarter and half-year ended September 30, 2026, were published in Maalai Malar and Financial Express on November 2, 2026. The results were also uploaded to the company...

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: Nov 10, 2026

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