Risk factor
Resilient to price shocks
Profitability factor
Very strong margins and returns
About
L.G. Balakrishnan & Bros Limited (LGB) is a manufacturer and distributor of chains, sprockets, and various metal-formed parts, primarily catering to the automotive industry. The company serves both the Indian domestic market and international clients. LGB's operations are divided into three primary segments: Transmission, Metal Forming, and an "Others" category. Within its Transmission division, the company produces a comprehensive range of items including drive chains for motorcycles and engines. It also creates specialized chains tailored for unique applications such as go-karts, snow bikes, racing, and other custom requirements. This segment further supplies sprockets, gears, tensioners, belts, and brake shoes. The Metal Forming segment focuses on manufacturing precision sheet metal components through a process known as fine blanking, in addition to general machined parts. LGB also engages in wire drawing, providing these materials to other chain manufacturing facilities, spring steel vendors, and even umbrella producers. All of the company's products are marketed and sold under its well-known Rolon brand. Founded in 1937, L.G. Balakrishnan & Bros Limited is headquartered in Coimbatore, India.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBI
Target Price
The average target price of LGBBROSLTD.NS is 2053 and suggests 33.1% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendatio