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

• Market Cap: ₹57.93B
• Dividend Yield: 1.09%
• Average Volume (3M): 3.50K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 1.01
• Revenue Growth: 14.37%
• EPS Growth: 12.68%
• Country: IN
• Employees: 3,081
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 29.20
• Shares Outstanding: 31,892,416
• 10 Day Avg. Volume: 4,281
• 30 Day Avg. Volume: 3,496
• PEG Ratio: 1.23
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -328.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: ₹2,053.00 ▲(12.35% Upside)

L.G. Balakrishnan & Bros Ltd. has a strong financial foundation with impressive revenue growth and profitability. The technical analysis indicates strong momentum, though the stock appears overbought. Valuation metrics suggest the stock is fairly valued. The main risk is the negative free cash flow, which could hinder future growth if not addressed.

L.G. Balakrishnan & Bros Ltd. Business Overview & Revenue Model

Company Description

L.G. Balakrishnan & Bros Ltd. (LGBBROSLTD) is a prominent player in the manufacturing sector, primarily engaged in the production of automotive components and engineering products. The company operates in various sectors including automotive, industrial, and engineering, focusing on core products such as chains, gears, and other transmission components. With a strong emphasis on innovation and quality, LGBBROSLTD serves a diverse clientele, encompassing both domestic and international markets.

How the Company Makes Money

L.G. Balakrishnan & Bros Ltd. generates revenue through multiple streams, primarily from the sale of its core products, which include automotive chains, gears, and other engineering components. The company has established long-term contracts with key automotive manufacturers, ensuring a steady demand for its products. Additionally, LGBBROSLTD benefits from its partnerships with various industrial sectors, providing components that are critical in machinery and equipment manufacturing. The company also invests in research and development to innovate and expand its product offerings, which contributes to its revenue growth. Furthermore, the company may engage in exporting its products, tapping into international markets to increase its sales and profitability.

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

Summary

L.G. Balakrishnan & Bros Ltd. shows strong financial health with consistent revenue growth and robust profitability metrics. The balance sheet is solid with low leverage and high equity backing. However, cash flow management is a concern due to negative free cash flow, which could impact future growth.

Income Statement

The income statement shows strong performance with consistent revenue growth, reflected in a 9.9% increase from 2024 to 2025. Gross profit margin improved to 56.2% in 2025, indicating efficient cost management. Net profit margin also increased to 11.7%, showcasing profitability. However, there is a slight decline in EBITDA margin to 16.1%, which may suggest increased operating expenses.

Balance Sheet

The balance sheet presents a robust financial position with a low debt-to-equity ratio of 0.08, suggesting low leverage and financial stability. Return on Equity (ROE) is strong at 15.9%, indicating efficient use of equity capital. The equity ratio stands at 74.1%, reflecting a solid capital structure with significant equity backing.

Cash Flow

Cash flow analysis shows a decrease in free cash flow, turning negative in 2025, indicating potential cash flow management issues. The operating cash flow to net income ratio is 0.95, reflecting adequate cash generation from operations relative to net income. Free cash flow to net income ratio is negative, highlighting a need for better capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.64B	25.78B	23.46B	22.03B	21.02B	16.09B
Gross Profit	13.73B	14.49B	12.21B	11.77B	8.49B	6.63B
EBITDA	4.73B	4.15B	4.52B	4.26B	4.23B	2.73B
Net Income	3.04B	3.02B	2.71B	2.52B	2.45B	1.33B
Balance Sheet
Total Assets	0.00	25.70B	22.37B	18.73B	17.09B	13.57B
Cash, Cash Equivalents and Short-Term Investments	4.15B	4.15B	3.40B	3.46B	2.87B	1.43B
Total Debt	0.00	1.57B	1.15B	1.04B	1.04B	835.25M
Total Liabilities	-19.07B	6.63B	5.93B	5.05B	5.74B	4.76B
Stockholders Equity	19.07B	19.04B	16.41B	13.65B	11.32B	8.79B
Cash Flow
Free Cash Flow	0.00	-118.33M	1.81B	859.08M	1.55B	1.88B
Operating Cash Flow	0.00	2.88B	3.43B	1.67B	2.02B	2.26B
Investing Cash Flow	0.00	-3.11B	-2.99B	-1.57B	-1.82B	-1.10B
Financing Cash Flow	0.00	177.44M	-400.06M	-577.93M	-227.76M	-597.78M

L.G. Balakrishnan & Bros Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1827.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 1827.25 is above the 20-day moving average (MA) of 1453.11, above the 50-day MA of 1398.12, and above the 200-day MA of 1278.44, indicating a bullish trend. The MACD of 97.22 indicates Negative momentum. The RSI at 88.92 is Negative, neither overbought nor oversold. The STOCH value of 94.00 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹57.93B	17.95	―	1.09%	14.37%	12.68%
VAIBHAVGBL	71 Outperform	₹45.74B	24.90	―	2.26%	8.92%	46.68%
ROLEXRINGS	65 Neutral	₹32.83B	18.95	―	―	-7.01%	9.99%
V2RETAIL	62 Neutral	₹84.77B	105.49	―	―	59.68%	112.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
THANGAMAYL	54 Neutral	₹94.53B	50.14	―	0.37%	35.04%	80.12%
VIPIND	48 Neutral	₹56.64B	―	―	―	-6.53%	-14507.38%