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Check Before You Invest : LG Balakrishnan & Bros Ltd

BSE: 500250 NSE: LGBBROSLTD ISIN: INE337A01034
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does LG Balakrishnan & Bros Ltd belong to?
LG Balakrishnan & Bros Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is LG Balakrishnan & Bros Ltd a good quality company?
LG Balakrishnan & Bros Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is LG Balakrishnan & Bros Ltd undervalued or overvalued?
LG Balakrishnan & Bros Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is LG Balakrishnan & Bros Ltd a good buy now?
LG Balakrishnan & Bros Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd revenue growth is 9.9% for FY-2025 , which is below its 5 year CAGR of 10.8% , indicating slower growth.
Q.2 Gross Profit margin of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Gross profit margin which is the profit after deduction of direct costs, is 17.8% for FY-2025 , which is below its 5 year median of 18.1% , indicating decreasing margins.
Q.3 Operating Profit Margin of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.14% for FY-2025 , which is below its 5 year median of 16.85% indicating decreasing margins.
Q.4 Net Profit Margin of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Net Profit Margin is 11.72% for FY-2025 , is above with its 5 year median of 11.57%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 17.8 18.1
Operating Profit Margin 16.14 16.85
Net Profit Margin 11.72 11.57
Q.5 Return on Asset of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Return on Asset is 12.57%, which is below its 5 year historical median of 13.21%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Return on equity is 17.12% for FY-2025 , which is below its historical median of 18.16%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Return on capital employed is 21.28% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Cash conversion cycle is 57 days, below its historical median of 57 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.07 1.23
ROE 17.12 18.16
ROCE 21.28 23.35
Cash Conversion Cycle 57 days 57 days
Q.9 Debt to Equity ratio of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Debt-to-Equity ratio is 0.07 , which is lower with the industry average of 0.4 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of LG Balakrishnan & Bros Ltd?
LG Balakrishnan & Bros Ltd Debt to cash flow from operations is 0.49 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of LG Balakrishnan & Bros Ltd?
Promoters hold 34.82% of the LG Balakrishnan & Bros Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of LG Balakrishnan & Bros Ltd vs industry peers?
LG Balakrishnan & Bros Ltd revenue CAGR is 10.82% , compared to the industry median CAGR of 11.82% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,578.3 492.3
Gross Profit 458.9 44.4
Operating Profit 416 47
Net Profit 302 23.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.07 1.23
ROE 17.12 11.57
ROCE 21.28 13.36
Cash Conversion Cycle (days) 57.4 47

Valuation & price assessment

Q.1 Stock return of LG Balakrishnan & Bros Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 22.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 22.1% 43.1% 27.7% 45.4%
Q.3 Valuation ratios of LG Balakrishnan & Bros Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 16.59 11.42 39.31
Price to Book 2.65 1.16 2.88
Price to Sales 1.89 0.60 1.29
EV to EBITDA 10.29 5.66 11.85

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