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

• Market Cap: ₹40.16B
• Dividend Yield: 1.43%
• Average Volume (3M): 1.53K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.05
• Revenue Growth: 11.99%
• EPS Growth: 6.85%
• Country: IN
• Employees: 3,081
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Auto - Parts
• EPS (TTM): 18.70
• Shares Outstanding: 31,892,416
• 10 Day Avg. Volume: 1,178
• 30 Day Avg. Volume: 1,528
• 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: ₹1,391.00
• Price Target Upside: 10.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: ₹1,391.00 ▲(10.47% Upside)

L.G. Balakrishnan & Bros Ltd. shows strong financial performance with impressive profitability and balance sheet strength. However, technical analysis indicates bearish momentum, which could pose short-term risks. The valuation appears reasonable, contributing positively to the overall score.

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

Company Description

L.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 Money

L.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

Strong financial health with robust profitability and a solid balance sheet, evidenced by a low debt-to-equity ratio and strong ROE. However, negative free cash flow indicates potential cash flow management issues.

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	25.78B	25.78B	23.46B	22.03B	19.30B	15.02B
Gross Profit	12.02B	14.49B	12.21B	11.77B	8.49B	6.63B
EBITDA	4.63B	4.15B	4.52B	4.26B	3.89B	2.54B
Net Income	3.02B	3.02B	2.71B	2.52B	2.45B	1.33B
Balance Sheet
Total Assets	25.70B	25.70B	22.37B	18.73B	17.09B	13.57B
Cash, Cash Equivalents and Short-Term Investments	4.22B	4.22B	3.40B	3.59B	580.29M	600.27M
Total Debt	1.57B	1.57B	1.15B	1.04B	1.00B	835.25M
Total Liabilities	6.63B	6.63B	5.93B	5.05B	5.74B	4.76B
Stockholders Equity	19.04B	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: Neutral
• Last Price: 1259.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LGBBROSLTD, the sentiment is Neutral. The current price of 1259.15 is below the 20-day moving average (MA) of 1272.16, below the 50-day MA of 1274.16, and below the 200-day MA of 1266.04, indicating a bearish trend. The MACD of -9.21 indicates Positive momentum. The RSI at 47.69 is Neutral, neither overbought nor oversold. The STOCH value of 40.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
ROLEXRINGS	72 Outperform	₹36.81B	21.00		―	-7.01%	9.98%
LGBBROSLTD	71 Outperform	₹40.16B	13.16		1.43%	11.99%	6.85%
V2RETAIL	61 Neutral	₹60.12B	74.82		―	59.68%	112.51%
VAIBHAVGBL	61 Neutral	₹36.14B	22.05		―	11.14%	19.42%
Sector *	61 Neutral	$17.22B	11.53	-5.99%	3.08%	1.40%	-15.51%
THANGAMAYL	58 Neutral	₹61.40B	55.39		0.63%	28.28%	-16.65%
VIPIND	49 Neutral	₹58.64B	―		0.48%	-6.53%	-14491.90%