LG Balakrishnan & Bros Ltd - Stock Valuation and Financial Performance

BSE: 500250 | NSE: LGBBROSLTD | Auto Ancillary | Small Cap

LG Balakrishnan&Bros Share Price

1,266.90 6.95 0.55%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on LG Balakrishnan&Bros

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Semi Strong

G Balakrishnan & Bros stock performance -

mw4me loader
P/E Ratio (CD):
15.44
Market Cap:
3,982.4 Cr.
52-wk low:
727
52-wk high:
1,409.4

Is LG Balakrishnan & Bros Ltd an attractive stock to invest in?

1. Is LG Balakrishnan & Bros Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that LG Balakrishnan & Bros Ltd is a average quality company.

2. Is LG Balakrishnan & Bros Ltd undervalued or overvalued?

The key valuation ratios of LG Balakrishnan & Bros Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is LG Balakrishnan & Bros Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of LG Balakrishnan & Bros Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of LG Balakrishnan&Bros:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
LG Balakrishnan & Bros Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 16.6%15.5%13.2%12.9%13.6%12.6%10.3%14.7%21.7%17.9%-
Value Creation
Index
0.20.1-0.1-0.10.0-0.1-0.30.10.60.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,1091,1731,2051,2591,4181,6881,5431,6092,1022,2032,262
Sales YoY Gr.-5.8%2.8%4.4%12.7%19%-8.6%4.3%30.7%4.8%-
Adj EPS 19.721.320.522.927.229.524.639.473.274.982.2
YoY Gr.-8.1%-3.9%11.7%18.9%8.3%-16.7%60.2%86%2.3%-
BVPS (₹) 97.2115.3131.8165.8186.5212.1224.9280.1360.7434.9491.5
Adj Net
Profit
626764.371.985.592.677.1124230235258
Cash Flow from Ops. 95.8102117150128102203211202167-
Debt/CF from Ops. 1.61.71.50.90.92.10.60.30.50.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.9%9.2%12.6%4.8%
Adj EPS 16%22.4%45%2.3%
BVPS18.1%18.5%24.6%20.6%
Share Price 30% 26.8% 62.2% 70%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
21.919.916.515.315.514.811.215.622.918.817.7
Op. Profit
Mgn %
11.612.211.513.113.812.512.115.718.517.317.1
Net Profit
Mgn %
5.85.95.566.25.34.97.61110.711.4
Debt to
Equity
0.50.50.40.30.20.30.20.10.10.1-
Working Cap
Days
13213512811611911712812612213793
Cash Conv.
Cycle
5246423737445250576954

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 12.61%

Net Profit is growing at healthy rate in last 3 years 45.00%

Return on Equity has declined versus last 3 years average to 17.70%

Sales growth is not so good in last 4 quarters at 1.03%

Latest Financials - LG Balakrishnan & Bros Ltd.

Standalone Consolidated
TTM EPS (₹) 82.6 82.2
TTM Sales (₹ Cr.) 2,155 2,262
BVPS (₹.) 484.5 491.5
Reserves (₹ Cr.) 1,489 1,512
P/BV 2.62 2.58
PE 15.36 15.44
From the Market
52 Week Low / High (₹) 726.95 / 1409.40
All Time Low / High (₹) 3.25 / 1409.40
Market Cap (₹ Cr.) 3,982
Equity (₹ Cr.) 31.4
Face Value (₹) 10
Industry PE 46.3

Management X-Ray of LG Balakrishnan&Bros:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of LG Balakrishnan&Bros

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,1091,1731,2051,2591,4181,6881,5431,6092,1022,203
Operating Expenses 9821,0311,0681,0971,2221,4791,3571,3571,7131,822
Manufacturing Costs227259278248275338294274355371
Material Costs5205205005606457707057409491,026
Employee Cost 131147170187204256255239286309
Other Costs 10410511910299115102103122116
Operating Profit 126142137162196209186252389381
Operating Profit Margin (%) 11.4%12.1%11.4%12.9%13.8%12.4%12.1%15.7%18.5%17.3%
Other Income 524953581226
Interest 181818161213161198
Depreciation 33394653586879838379
Exceptional Items 070101219142320
Profit Before Tax 809478103131143115180332340
Tax 15201329434625478688
Profit After Tax 65736574899790133246252
PAT Margin (%) 5.9%6.3%5.4%5.9%6.2%5.7%5.8%8.3%11.7%11.5%
Adjusted EPS (₹)20.022.720.222.627.431.729.242.578.280.3
Dividend Payout Ratio (%)15%15%15%15%8%16%17%24%19%20%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 3083654165215856667068791,1321,365
Share Capital 8161616163131313131
Reserves 3003494015055706356758481,1011,334
Minority Interest1013151715154222
Debt129157139975517892598986
Long Term Debt66999592499981192117
Short Term Debt645844667911406869
Trade Payables146183187214260258247260275210
Others Liabilities 1561491039810010582178214210
Total Liabilities 7498678609471,0151,2211,1321,3781,7131,873

Fixed Assets

Gross Block486586691434502682809845880940
Accumulated Depreciation2312703113889151225304381454
Net Fixed Assets255316381396413531584541499487
CWIP 93710142737961532
Investments 1718196054552063104134
Inventories208231228231253307290301436400
Trade Receivables146147153176194221175247294272
Cash Equivalents 678199105146291348
Others Assets10811362536461507375201
Total Assets 7498678609471,0151,2211,1321,3781,7131,873

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 96102117150128102203211202167
PBT 809478103131143115180332340
Adjustment 47516564666877888865
Changes in Working Capital -15-23-82-27-5843-11-135-152
Tax Paid -17-20-17-20-42-51-32-46-82-86
Cash Flow From Investing Activity -60-97-87-78-87-180-55-121-182-157
Capex -62-97-84-85-91-183-71-38-48-76
Net Investments 1-1-400015-302
Others 1116421-81-134-84
Cash Flow From Financing Activity -39-4-33-60-5081-154-33-19-58
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 032140000000
Interest Paid -18-19-17-14-11-11-14-9-7-5
Dividend Paid -6-12-16-2-13-17-380-31-47
Others -14-5-14-44-26109-102-2420-5
Net Cash Flow -41-211-92-5572-48
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)23.2422.0116.7215.8716.0115.4513.1416.7624.4320.2
ROCE (%)22.2922.4416.9219.121.2119.715.3521.5331.3225.92
Asset Turnover Ratio1.71.591.531.541.481.511.311.281.361.23
PAT to CFO Conversion(x)1.481.41.82.031.441.052.261.590.820.66
Working Capital Days
Receivable Days41424143464547484747
Inventory Days61626360616171676469
Payable Days9311613513013412313112510386

LG Balakrishnan & Bros Ltd Stock News

LG Balakrishnan & Bros Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of LG Balakrishnan&Bros on 28-Mar-2024 16:01 is ₹1,266.9.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of LG Balakrishnan&Bros stood at ₹3,982.4.
The latest P/E ratio of LG Balakrishnan&Bros as of 28-Mar-2024 16:01 is 15.36.
The latest P/B ratio of LG Balakrishnan&Bros as of 28-Mar-2024 16:01 is 2.62.
The 52-week high of LG Balakrishnan&Bros is ₹1,409.4 and the 52-week low is ₹727.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of LG Balakrishnan&Bros is ₹2,155 ( Cr.) .

About LG Balakrishnan & Bros Ltd

L G Balakrishnan & Bros. (LGB), one of the leading companies in South India, was established way back in 1937. Started as a transport operator, the company entered into manufacturing in 1966 when timing chain manufacturing operations were taken up. Since then the company has come a long way, keeping in pace with the technological advancements and has grown into India's leading roller chain manufacturer. The company today stands proud as the premier manufacturer of both automotive and industrial chains under the popular brand name ‘ROLON’. LGB is now surging ahead to become a metal forming company concentrating on hot, warm & cold forging, blanking, fine blanking & precision machined parts.

Milestones

  • 1937: Fleet operator bus body building
  • 1960: chain manufacturing plant
  • 1970: Steel strips and wire rods
  • 1980: Fine product division
  • 1981: Tyre retreading
  • 1982: Commercial tooling division
  • 1985: Instrumentation division
  • 1990: Manufacturer of cols Forge rollers
  • 1993: Rubber belt division
  • 1994: Aluminum bus bodies division
  • 1995: Textile division
  • 2000: Cold forging division
  • 2003: Hot forging division 
  • 2006: LGB Bosh plant for CRDI components

Major Products:

Transmission Products: Chains, Sprockets, Tensioners, Belts

Metal Forming:    Fine Blanking, Forging, Machined Components, Wire Drawing

Achievements

  • LGB has become the first Indian Company to supply timing chains to 4-wheeler OEMs in India and is the largest exporter to the US
  • During the late 1980s, LGB entered into a technical know-how agreement with Daido Kogyo, Japan to become the leading supplier of drive chains and cam chains to all 2-Wheeler OEMs in India. 
  • LGB has become the No. 1 OEM supplier of drive chains with 70% market share, around 50% in the replacement market.  
  • LGB also makes industrial chains. These chains are known for their Quality and used in various applications. LGB is the leading player in the Indian market and exports about $5 Million to US and Europe, annually. 
  • LGB acquired fine blanking technology in mid 80s for manufacturing chain plates. It further extended its fine blanking division as a separate manufacturing during the late 90s, to cater to high OEM demands for Fine Blanked components. 
  • In late 1990, a new chapter began in LGB’s history of engineered manufacturing. It graduated to being a manufacturer of forged parts inculcating the sound technical stability it had in its chains. Today, LGB makes hot, warm & cold forgings for all 2-wheeler OEMs in the country and abroad. 
  • LGB is a leading fine blanking manufacturer having about 15 presses in operation. 
  • LGB’s turnover has crossed the landmark of $100 million in 2005-2006 which is inclusive of exports to the US and Europe. 
  • LGB has been accredited with ISO 9001 by UL, US and further has TS16949 , ISO 14001, API & Export House Certifications.

Certification

  • Vaiyampalayam Plant - ISO / TS 16949 Fine Products / Ganapathy - ISO / TS 16949
  • Gudalur Plant - API Two Star Export House
  • Annur Plant - ISO / TS 16949
  • Gudalur Plant - ISO 9001: 2000 Vaiyampalayam / Annur - ISO 9001: 2000
  • Fine Products / Ganapathy - ISO 9001: 2000 Cold Forgings Division - ISO 9001: 2000 
  • Forging Division - ISO 9001: 2000 Forging Division - ISO 9001: 2000 
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