LGB Forge

Why is LGB Forge Ltd falling/rising?

As of 01-Sep, LGB Forge Ltd's stock price is declining, currently at 6.57, with a total drop of -4.86% over the last three days. Weak long-term fundamentals, high debt levels, and reduced promoter confidence are contributing to this downward trend.

As of 01-Sep, LGB Forge Ltd's stock price is falling, currently at 6.57, reflecting a change of -0.22, or -3.24%. This decline is part of a broader trend, as the stock has been losing value for the last three days, resulting in a total drop of -4.86% during this period. Additionally, the stock has underperformed its sector by -2.1% today.<BR><BR>The company's long-term fundamentals are weak, evidenced by a staggering -162.27% compound annual growth rate (CAGR) in operating profits over the last five years. This is compounded by a high Debt to EBITDA ratio of 9.06 times, indicating a low ability to service debt. Furthermore, the average Return on Equity is only 1.75%, suggesting low profitability relative to shareholders' funds.<BR><BR>Investor confidence appears to be waning, as promoters have reduced their stake in the company by -2.08% in the previous quarter, now holding 70.81%. This decrease in ownership may reflect a lack of confidence in the company's future prospects. The stock has also consistently underperformed against the benchmark, generating -31.56% returns over the past year while the BSE500 has shown a much smaller decline of -4.26% during the same period.<BR><BR>Overall, the combination of negative operating profits, declining investor participation, and reduced promoter confidence contributes to the ongoing fall in LGB Forge Ltd's stock price.

Who are in the management team of LGB Forge?

The management team of LGB Forge includes B Vijayakumar (Chairman), V Rajvirdhan (Managing Director), and several independent directors, along with K. Kousalya as Company Secretary. They oversee the company's operations and strategic direction.

The management team of LGB Forge includes the following individuals:<BR><BR>1. **B Vijayakumar** - Chairman (Non-Executive)<BR>2. **V Rajvirdhan** - Managing Director<BR>3. **P Shanmugasundaram** - Independent Director<BR>4. **P V Ramakrishnan** - Independent Director<BR>5. **Rajsri Vijayakumar** - Director<BR>6. **V. Ragupathi** - Director<BR>7. **A. Sampathkumar** - Director<BR>8. **B Vijayakumar** - Director (also listed as Chairman)<BR>9. **Premkumar Parthasarathy** - Independent Director<BR>10. **Sajeev Mathew Rajan** - Independent Director<BR>11. **Saravana Marthandam** - Independent Director<BR>12. **K. Kousalya** - Company Secretary & Compliance Officer<BR><BR>This team is responsible for overseeing the operations and strategic direction of the company.

What does LGB Forge do?

LGB Forge Ltd is a micro-cap manufacturer of cold and hot forged components for the auto industry, with net sales of 28 Cr and a net profit of 10 Cr reported for June 2026. The company, incorporated in 2006, has a market cap of INR 160 Cr and operates with a debt-equity ratio of 1.67.

Overview: <BR>LGB Forge Ltd is a manufacturer of cold and hot forged components operating in the auto components and equipment industry, categorized as a micro-cap company.<BR><BR>History: <BR>LGB Forge Ltd was incorporated as a public limited company on June 7, 2006. The company has evolved from its origins as a transport company founded in 1937 and has experienced status changes, growing into a mid-cap company by 2000. The latest quarterly results reported net sales and net profit for June 2026.<BR><BR>Financial Snapshot: <BR>- Net Sales: 28 Cr (Quarterly Results - Jun 2026) <BR>- Net Profit: 10 Cr (Quarterly Results - Jun 2026) <BR>- Market Cap: INR 160 Cr (Micro Cap) <BR><BR>Key Metrics: <BR>- P/E: N/A <BR>- Industry P/E: 50 <BR>- Dividend Yield: 0.00% <BR>- Debt Equity: 1.67 <BR>- Return on Equity: -13.28% <BR>- Price to Book: 10.03 <BR><BR>Contact Details: <BR>Address: 6/16/13 Krishnarayapuram Road, Ganapathy Post Coimbatore Tamil Nadu : 641006 <BR>Tel: 91-422-2532325 <BR>Email: info@lgb.co.in <BR>Website: http://www.lgbforge.co.in

Who are the peers of the LGB Forge?

LGB Forge's peers include Shivam Autotech, Simm. Marshall, Bhagwati Auto, IP Rings, Machino Plastics, Bharat Gears, Pritika Engineer, and Sintercom India. In terms of returns, Bhagwati Auto leads with 81.69%, while LGB Forge has a return of -28.90%.

Peers: The peers of LGB Forge are Shivam Autotech, Simm. Marshall, Bhagwati Auto, IP Rings, Machino Plastics, Bharat Gears, Pritika Engineer, and Sintercom India.<BR><BR>Quality Snapshot: Below Average management risk is observed at Shivam Autotech, Simm. Marshall, IP Rings, Machino Plastics, LGB Forge, Pritika Engineer, and Sintercom India, while Average management risk is found at Bhagwati Auto and Bharat Gears. Good growth is noted at Simm. Marshall and Sintercom India, Average growth is seen at Bhagwati Auto, IP Rings, Machino Plastics, Pritika Engineer, and LGB Forge, while Below Average growth is present at Shivam Autotech and Bharat Gears. Capital Structure is rated as Good for Bhagwati Auto, Average for Bharat Gears, and Below Average for the rest.<BR><BR>Return Snapshot: Bhagwati Auto has the highest 1-year return at 81.69%, while Shivam Autotech has the lowest at -35.49%. LGB Forge's 1-year return of -28.90% is better than Shivam Autotech's but worse than Bharat Gears' 13.66%. Additionally, peers such as Shivam Autotech, Machino Plastics, and Bharat Gears have negative six-month returns.

How big is LGB Forge?

As of 31st August, LGB Forge Ltd has a market capitalization of 160.00 Cr, with recent Net Sales of 103.61 Cr and a Net Profit of 7.20 Cr. The company reported Shareholder's Funds of 16.27 Cr and Total Assets of 62.86 Cr for the period ending March 2026.

As of 31st August, LGB Forge Ltd has a market capitalization of 160.00 Cr, which classifies it as a Micro Cap company.<BR><BR>In the latest four quarters, LGB Forge reported Net Sales of 103.61 Cr and a Net Profit of 7.20 Cr.<BR><BR>For the reporting period of March 2026, the company had Shareholder's Funds amounting to 16.27 Cr and Total Assets of 62.86 Cr.

Which are the latest news on LGB Forge?

Should I buy, sell or hold LGB Forge Ltd?

When is the next results date for LGB Forge Ltd?

The next results date for LGB Forge Ltd is 10 August 2026.

The next results date for LGB Forge Ltd is scheduled for 10 August 2026.

Are LGB Forge Ltd latest results good or bad?

LGB Forge Ltd's latest results are concerning, showing a net loss of ₹0.51 crore in Q4 FY26, a decline from the previous year's loss, despite a 7.23% revenue increase. The company faces significant operational challenges, highlighted by a sharp drop in operating margins and three consecutive quarterly losses.

LGB Forge Ltd's latest results indicate a challenging situation for the company. In the fourth quarter of FY26, the company reported a net loss of ₹0.51 crore, which is a deterioration compared to a loss of ₹0.40 crore in the same quarter last year. While revenue increased by 7.23% year-on-year to ₹25.66 crore, this growth has not translated into profitability, as the operating margin fell sharply to 2.61%, down from 6.04% in the previous quarter.<BR><BR>The company has now recorded three consecutive quarterly losses, raising concerns about its operational efficiency and cost structure. The return on equity is notably negative at -7.92%, indicating that shareholder value is being destroyed. Additionally, the company's high debt-to-equity ratio of 1.37 and negative interest coverage ratio suggest financial strain.<BR><BR>Overall, despite some revenue growth, the significant margin compression and ongoing losses point to a troubling financial outlook for LGB Forge. The combination of these factors leads to the conclusion that the latest results are not good and reflect deeper operational challenges that the company needs to address.

How has been the historical performance of LGB Forge?

LGB Forge has experienced declining net sales and profitability, with net sales dropping from 130.06 Cr in Mar'22 to 94.04 Cr in Mar'25, and operating profit turning negative by Mar'25. Despite a decrease in total assets and liabilities, cash flow from operating activities improved to 15.00 Cr in Mar'25.

Answer:<BR>The historical performance of LGB Forge shows a fluctuating trend in net sales and profitability over the years.<BR><BR>Breakdown:<BR>LGB Forge's net sales have seen a decline from 130.06 Cr in Mar'22 to 94.04 Cr in Mar'25, with a notable drop in Mar'23 to 116.22 Cr. The total operating income followed a similar trend, peaking in Mar'22 and then decreasing to 94.04 Cr in Mar'25. The raw material cost has varied, with a significant drop from 73.30 Cr in Mar'22 to 43.31 Cr in Mar'25. Operating profit, which was positive at 10.23 Cr in Mar'22, turned negative in subsequent years, reaching -1.22 Cr by Mar'25. The profit after tax also reflected this downturn, moving from a profit of 3.44 Cr in Mar'22 to a loss of 1.22 Cr in Mar'25. On the balance sheet, total liabilities decreased from 85.19 Cr in Mar'23 to 62.52 Cr in Mar'25, while total assets also declined from 85.19 Cr to 62.52 Cr in the same period. Cash flow from operating activities improved to 15.00 Cr in Mar'25, contrasting with a negative cash flow in Mar'23. Overall, LGB Forge's financial performance indicates challenges in maintaining profitability and sales, alongside a reduction in total assets and liabilities.

Is LGB Forge overvalued or undervalued?

As of August 8, 2025, LGB Forge is considered overvalued with a PE ratio of -238.68 and an EV to EBITDA of 77.85, significantly lagging behind peers like Bharat Forge and CIE Automotive, and has underperformed the Sensex with a year-to-date return of -39.27%.

As of 8 August 2025, LGB Forge's valuation grade has moved from risky to expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its troubling financial ratios, including a PE ratio of -238.68, an EV to EBITDA of 77.85, and a Price to Book Value of 13.05. These figures suggest that the market is pricing the stock excessively high relative to its earnings and book value.<BR><BR>In comparison to its peers, LGB Forge stands out unfavorably; for instance, Bharat Forge, which is rated fair, has a PE ratio of 52.86 and an EV to EBITDA of 22.19, while CIE Automotive, rated attractive, has a PE of 19.3 and an EV to EBITDA of 11.39. This stark contrast highlights LGB Forge's overvaluation in the context of its industry. Additionally, the company's stock performance has lagged behind the Sensex, with a year-to-date return of -39.27% compared to the Sensex's 2.20%, further reinforcing the notion that LGB Forge is not a sound investment at its current price.

Who are the top shareholders of the LGB Forge?

The top shareholders of LGB Forge include promoter V Rajvirdhan with a 28.45% stake, while individual investors hold 23.19%. There are no pledged promoter holdings or mutual fund investments, and two foreign institutional investors hold a negligible percentage.

The top shareholders of LGB Forge primarily consist of its promoters, with V Rajvirdhan holding the highest stake at 28.45%. There are no pledged promoter holdings, and the company does not have any mutual fund investments. Additionally, two foreign institutional investors (FIIs) hold a negligible percentage of shares. Individual investors collectively hold 23.19% of the company.

What is the technical trend for LGB Forge?

As of June 2, 2025, LGB Forge's trend is mildly bearish due to daily moving averages, despite some mildly bullish signals from weekly MACD and KST, with overall bearish sentiment reinforced by monthly indicators and neutral signals from RSI and OBV.

As of 2 June 2025, the technical trend for LGB Forge has changed from sideways to mildly bearish. The current stance is mildly bearish, primarily driven by the daily moving averages indicating a bearish trend. While the weekly MACD and KST show mildly bullish signals, the monthly indicators are mostly bearish, suggesting a lack of strength in the bullish momentum. The Bollinger Bands are mildly bullish on both weekly and monthly time frames, but this is countered by the overall bearish sentiment from the moving averages. The absence of clear signals in the RSI and OBV further supports a neutral to bearish outlook.

Has LGB Forge declared dividend?

No Dividend History Available