Check Before You Invest : LGB Forge Ltd

BSE: 533007 NSE: LGBFORGE ISIN: INE201J01017

| Sector: Automobiles | Industry: Forgings

Snapshot

Q.1 Which industry/sub-sector does LGB Forge Ltd belong to?

LGB Forge Ltd belongs to the Automobiles sector, operating specifically within the Forgings segment.

Q.2 Is LGB Forge Ltd a good quality company?

LGB Forge Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is LGB Forge Ltd undervalued or overvalued?

LGB Forge Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is LGB Forge Ltd a good buy now?

LGB Forge Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of LGB Forge Ltd?

LGB Forge Ltd revenue growth is 5.2% for FY-2025, which is above its 5-year CAGR of -1.45%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of LGB Forge Ltd?

LGB Forge Ltd Return on capital employed is 3.27% for FY-2025, which is in line with its 5-year historical median of 3.27%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of LGB Forge Ltd?

LGB Forge Ltd Return on Asset is -1.73%, which is in line with its 5-year historical median of -1.73%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of LGB Forge Ltd?

LGB Forge Ltd Return on equity is -6.37% for FY-2025, which is in line with its 5-year historical median of -6.37%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of LGB Forge Ltd?

LGB Forge Ltd Cash conversion cycle is 135 days, in line with its 5-year historical median of 135 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.33	1.22
ROE	-6.37	-6.37
ROCE	3.27	3.27
Cash Conversion Cycle	135 days	135 days

Q.6 Gross Profit margin of LGB Forge Ltd?

LGB Forge Ltd Gross profit margin which is the profit after deduction of direct costs, is -0.5% for FY-2025, which is in line with its 5-year median of -0.5%, indicating stable margins.

Q.7 Operating Profit Margin of LGB Forge Ltd?

LGB Forge Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.56% for FY-2025, which is in line with its 5-year median of 1.56% indicating stable margins.

Q.8 Net Profit Margin of LGB Forge Ltd?

LGB Forge Ltd Net Profit Margin is -1.3% for FY-2025, is in line with with its 5-year median of -1.3%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-0.5	-0.5
Operating Profit Margin	1.56	1.56
Net Profit Margin	-1.3	-1.3

Q.9 Debt to Equity ratio of LGB Forge Ltd?

LGB Forge Ltd Debt-to-Equity ratio is 1.05, which is above with the industry average of 0.49, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of LGB Forge Ltd?

LGB Forge Ltd Debt to cash flow from operations is 1.24, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of LGB Forge Ltd?

Promoters hold 72.89% of the LGB Forge Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of LGB Forge Ltd vs industry peers?

LGB Forge Ltd revenue CAGR is -1.45%, compared to the industry median CAGR of 14.05%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	5.2	14.1
Gross Profit Growth	0	25.5
Operating Profit Growth	0	18.7
Net Profit Growth	0	27.4

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.33	0.92
ROE	-6.37	15.17
ROCE	3.27	14.66
Cash Conversion Cycle (days)	135.39	112

Valuation & price assessment

Q.1 Stock return of LGB Forge Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 4.5% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	4.5%	15.5%	-3.7%	-27.7%

Q.3 Valuation ratios of LGB Forge Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	50.78	33.04
Price to Book	11.26	8.92	3.77
Price to Sales	1.84	2.06	1.87
EV to EBITDA	42.16	15.63	16.81

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