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

• Market Cap: ₹56.63B
• Dividend Yield: 1.07%
• Average Volume (3M): 3.50K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.84
• Revenue Growth: 14.37%
• EPS Growth: 12.68%
• Country: IN
• Employees: 3,081
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 30.00
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 100
• Revenue Forecast (FY): ₹29.46B

• Rating: 76 Outperform
• Price Target: ₹1,843.00 ▲(3.87% Upside)
• Action: Reiterated Date: 11/05/25
• Date: Action: Reiterated 11/05/25

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.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for products and effective market expansion, supporting long-term business sustainability.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing the company to withstand economic fluctuations and invest in growth opportunities.

Profitability

Improved net profit margin reflects effective cost management and operational efficiency, enhancing the company's ability to generate profits over time.

Negative Factors

Negative Free Cash Flow

Negative free cash flow indicates potential cash management issues, which could limit the company's ability to invest in growth and manage debt obligations.

EBITDA Margin Decline

A decline in EBITDA margin suggests rising operating expenses, which could pressure profitability if not addressed, impacting long-term financial performance.

Cash Flow Management

While operating cash flow is adequate, the ratio indicates potential inefficiencies in converting income into cash, which may affect liquidity and investment capacity.

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

Company Description

L.G. Balakrishnan & Bros Limited manufactures and sells chains, sprockets, and metal formed parts for automotive applications in India and internationally. The company operates through Transmission, Metal Forming, and Others segments. It offers transmission products comprising motorcycle and engine drive chains; special application chains for go kart, snow bikes, racing purposes, and other customized applications; sprockets and gears; tensioners; belts; and brake shoes. The company also provides metal forming products consisting of fine blanking for precision sheet metal parts; and machined components, as well as wire drawing products for other chain manufacturing plants, spring steel suppliers, umbrella manufacturers, etc. It markets its products under the Rolon brand name. The company was founded in 1937 and is based in Coimbatore, India.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	27.90B	25.78B	23.46B	22.03B	21.02B	16.09B
Gross Profit	14.23B	14.49B	12.21B	11.77B	8.49B	6.63B
EBITDA	4.98B	4.15B	4.52B	4.26B	4.23B	2.73B
Net Income	3.20B	3.02B	2.71B	2.52B	2.45B	1.33B
Balance Sheet
Total Assets	27.57B	25.70B	22.37B	18.73B	17.09B	13.57B
Cash, Cash Equivalents and Short-Term Investments	2.31B	4.15B	3.40B	3.46B	2.87B	1.43B
Total Debt	1.95B	1.57B	1.15B	1.04B	1.04B	835.25M
Total Liabilities	7.58B	6.63B	5.93B	5.05B	5.74B	4.76B
Stockholders Equity	19.96B	19.04B	16.41B	13.65B	11.32B	8.79B
Cash Flow
Free Cash Flow	-5.56M	-118.33M	1.81B	859.08M	1.55B	1.88B
Operating Cash Flow	1.25B	2.88B	3.43B	1.67B	2.02B	2.26B
Investing Cash Flow	-880.60M	-3.11B	-2.99B	-1.57B	-1.82B	-1.10B
Financing Cash Flow	-358.27M	177.44M	-400.06M	-577.93M	-227.76M	-597.78M

L.G. Balakrishnan & Bros Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1774.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Negative. The current price of 1774.35 is below the 20-day moving average (MA) of 1880.57, below the 50-day MA of 1837.34, and above the 200-day MA of 1547.56, indicating a neutral trend. The MACD of -11.04 indicates Positive momentum. The RSI at 41.48 is Neutral, neither overbought nor oversold. The STOCH value of 35.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹56.63B	16.13	―	1.07%	14.37%	12.68%
ROLEXRINGS	76 Outperform	₹31.79B	1.84	―	―	-7.82%	5.33%
VAIBHAVGBL	75 Outperform	₹34.62B	10.86	―	2.52%	8.92%	46.68%
THANGAMAYL	66 Neutral	₹108.61B	23.90	―	0.37%	35.04%	80.12%
V2RETAIL	62 Neutral	₹69.30B	20.98	―	―	65.91%	139.39%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VIPIND	54 Neutral	₹47.17B	-25.69	―	―	-12.59%	-328.41%