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

L.G. Balakrishnan & Bros Ltd.

(NSE:LGBBROSLTD)

Select Model

Rating:67Neutral

Price Target:INR 1,815.00▲(7.78% Upside)

Action:downgraded

Date:08/09/26

Robust financial performance driven by growth and stability is a key strength, offset by bearish technical indicators showing downward price trends; reasonable valuation adds moderate support.

Positive Factors

Steady Revenue GrowthThe multi-year revenue uptrend indicates sustained demand for the company’s automotive power-transmission products rather than reliance on a single period. Continued growth can support operating scale, reinforce OEM and aftermarket relevance, and provide a durable base for future earnings.

Negative Factors

Negative Free Cash FlowThe recent shift to negative free cash flow reduces internally generated funds available for debt reduction, dividends, or growth investment. If elevated reinvestment or working-capital needs persist, earnings may translate less efficiently into shareholder cash over the medium term.

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 revenue and net income growth, solid balance sheet with low debt and healthy ROE, but mixed cash flows due to recent negative free cash flow from investments.

Income Statement

85Very Positive

Balance Sheet

90Very Positive

Cash Flow

70Positive

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 Price1684.00

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 1684.00 is above 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:ENDURANCE	70Outperform	INR 319.65B	32.97	―	0.51%	29.35%	12.93%
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	67Neutral	INR 53.35B	16.66	―	1.31%	20.77%	4.95%
IN:WHEELS	57Neutral	INR 49.68B	25.98	―	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.	1678.05	-113.56	-6.34%
IN:ENDURANCE	Endurance Technologies Ltd.	2350.00	-539.60	-18.67%
IN:GABRIEL	Gabriel India Limited	1442.10	182.98	14.53%
IN:SSWL	Steel Strips Wheels Ltd	483.60	258.78	115.10%
IN:VARROC	Varroc Engineering Limited	792.35	167.68	26.84%
IN:WHEELS	Wheels India Limited	2130.75	1224.43	135.10%

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 com...

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