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L.G. Balakrishnan & Bros Ltd. (IN:LGBBROSLTD)
:LGBBROSLTD
India Market
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L.G. Balakrishnan & Bros Ltd. (LGBBROSLTD) AI Stock Analysis

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IN:LGBBROSLTD

L.G. Balakrishnan & Bros Ltd.

(LGBBROSLTD)

Rating:75Outperform
Price Target:
₹1,435.00
▲(5.38% Upside)
L.G. Balakrishnan & Bros Ltd. scores well due to strong financial performance, particularly in revenue growth and profitability. The valuation is attractive with a reasonable P/E ratio and dividend yield. However, technical indicators suggest neutral to bearish momentum, and cash flow management issues need addressing to maintain financial stability.

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

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

Company DescriptionL.G. Balakrishnan & Bros Ltd. (LGBBROSLTD) is a prominent Indian company primarily operating in the automotive industry. It specializes in the manufacture and supply of a diverse range of automotive components, including chains, sprockets, tensioners, and precision parts. With a strong presence in both domestic and international markets, LGBBROSLTD has established itself as a key player in the automotive sector, catering to the demands of major automobile manufacturers and OEMs.
How the Company Makes MoneyL.G. Balakrishnan & Bros Ltd. generates revenue through the production and sale of automotive components. The company's primary revenue stream comes from manufacturing chains and sprockets used in motorcycles and other vehicles, which are supplied to leading automobile manufacturers. Additionally, LGBBROSLTD produces tensioners and precision parts, broadening its product portfolio and revenue base. The company also benefits from strategic partnerships and long-term contracts with major OEMs, enhancing its market position and ensuring steady income. Its diversified presence in domestic and international markets further strengthens its revenue generation capabilities.

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. 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 financial stability.
Income Statement
85
Very Positive
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
88
Very Positive
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
72
Positive
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue25.78B25.78B23.46B22.03B19.30B15.02B
Gross Profit12.02B14.49B12.21B11.77B8.49B6.63B
EBITDA4.63B4.15B4.52B4.26B3.89B2.54B
Net Income3.02B3.02B2.71B2.52B2.45B1.33B
Balance Sheet
Total Assets25.70B25.70B22.37B18.73B17.09B13.57B
Cash, Cash Equivalents and Short-Term Investments4.22B4.22B3.40B3.59B580.29M600.27M
Total Debt1.57B1.57B1.15B1.04B1.00B835.25M
Total Liabilities6.63B6.63B5.93B5.05B5.74B4.76B
Stockholders Equity19.04B19.04B16.41B13.65B11.32B8.79B
Cash Flow
Free Cash Flow0.00-118.33M1.81B859.08M1.55B1.88B
Operating Cash Flow0.002.88B3.43B1.67B2.02B2.26B
Investing Cash Flow0.00-3.11B-2.99B-1.57B-1.82B-1.10B
Financing Cash Flow0.00177.44M-400.06M-577.93M-227.76M-597.78M

L.G. Balakrishnan & Bros Ltd. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1361.70
Price Trends
50DMA
1270.50
Positive
100DMA
1255.29
Positive
200DMA
1246.65
Positive
Market Momentum
MACD
20.97
Negative
RSI
67.53
Neutral
STOCH
77.56
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 1361.7 is above the 20-day moving average (MA) of 1274.89, above the 50-day MA of 1270.50, and above the 200-day MA of 1246.65, indicating a bullish trend. The MACD of 20.97 indicates Negative momentum. The RSI at 67.53 is Neutral, neither overbought nor oversold. The STOCH value of 77.56 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
₹42.41B14.10
1.50%11.99%6.85%
72
Outperform
₹37.84B21.84
-7.01%9.98%
61
Neutral
$17.97B12.87-5.29%2.97%1.26%-14.45%
61
Neutral
₹36.84B22.43
2.72%9.51%29.30%
58
Neutral
₹68.03B62.53
0.57%28.28%-16.65%
54
Neutral
₹57.96B72.13
59.68%112.52%
54
Neutral
₹61.80B
0.48%-6.53%-14507.38%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:LGBBROSLTD
L.G. Balakrishnan & Bros Ltd.
1,361.70
-29.14
-2.10%
IN:ROLEXRINGS
Rolex Rings Limited
1,387.30
-1,113.75
-44.53%
IN:THANGAMAYL
Thangamayil Jewellery Ltd.
2,194.60
160.82
7.91%
IN:V2RETAIL
V2 Retail Limited
1,640.10
552.25
50.77%
IN:VAIBHAVGBL
Vaibhav Global Ltd.
220.90
-83.53
-27.44%
IN:VIPIND
V.I.P.INDUSTRIES LTD.
422.80
-77.90
-15.56%
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 21, 2025