Check Before You Invest : LGB Forge Ltd

Q: 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: Is LGB Forge Ltd a good quality company?

LGB Forge Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is LGB Forge Ltd undervalued or overvalued?

LGB Forge Ltd appears Fair, as its key valuation ratios are in line with their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: -, Historic Median: -. Price to Book, Current: 10.09, Historic Median: 8.98. Price to Sales, Current: 1.57, Historic Median: 2.05. EV to EBITDA, Current: 37.98, Historic Median: 16.32

Q: 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

Q: 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: 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: 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: Net Profit Margin of LGB Forge Ltd?

LGB Forge Ltd Net Profit Margin is -1.3% for FY-2025, is in line with its 5-year median of -1.3%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: -0.5, Historic Median: -0.5. Operating Profit Margin (%), Current: 1.56, Historic Median: 1.56. Net Profit Margin (%), Current: -1.3, Historic Median: -1.3

Q: 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: 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.

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is LGB Forge Ltd undervalued or overvalued?

LGB Forge Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	-	-
Price to Book	10.09	8.98
Price to Sales	1.57	2.05
EV to EBITDA	37.98	16.32

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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 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.3 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.4 Net Profit Margin of LGB Forge Ltd?

LGB Forge Ltd Net Profit Margin is -1.3% for FY-2025, is in line 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

B: Does the business utilize capital efficiently?

Q.5 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.6 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.7 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.8 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 (x)	1.33	1.22
ROE (%)	-6.37	-6.37
ROCE (%)	3.27	3.27
Cash Conversion Cycle	135 days	135 days

C: How much debt does the business have and is it at a sustainable level?

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

LGB Forge Ltd Debt-to-Equity ratio is 1.05, which is above the industry average of 0.54, 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

D: Promoter shareholding and pledge status of LGB Forge Ltd?

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)

E: How does LGB Forge Ltd performance compare with that of its Peers?

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 10.29%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	5.2	10.3
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 (x)	1.33	0.92
ROE (%)	-6.37	14.91
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 3.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	3.5%	6.9%	-6.5%	-51%

Q.2 Valuation ratios of LGB Forge Ltd vs historical?

The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.

Q.3 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	-	-	33.04
Price to Book	10.09	8.98	3.77
Price to Sales	1.57	2.05	1.87
EV to EBITDA	37.98	16.32	16.91

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Check Before You Invest : LGB Forge Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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