L G Balakrishnan & Bros Ltd (LGBBROSLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

L G Balakrishnan

Pricol Ltd

SJS Enterprises

Fiem Industries

Suprajit Engg.

Lumax Industries

Subros

Sharda Motor

Banco Products

ASK Automotive

Ramkrishna Forg.

Why is L G Balakrishnan & Bros Ltd ?

High Management Efficiency with a high ROE of 17.67%

Company has a low Debt to Equity ratio (avg) at 0 times

Healthy long term growth as Operating profit has grown by an annual rate 34.20%

The company has declared positive results in Sep'2025 after 2 consecutive negative quarters

DPS(Y) Highest at Rs 20.00
DPR(Y) Highest at 21.94%
NET SALES(Q) Highest at Rs 787.02 cr

With ROE of 15.2, it has a Fair valuation with a 3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 43.44%, its profits have risen by 11.3% ; the PEG ratio of the company is 1.8

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to L G Balakrishnan should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is L G Balakrishnan for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

L G Balakrishnan

41.75%

1.25

34.80%

Sensex

4.25%

0.45

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.21%

EBIT Growth (5y)

34.20%

EBIT to Interest (avg)

36.42

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.51

Tax Ratio

22.49%

Dividend Payout Ratio

20.82%

Pledged Shares

Institutional Holding

19.32%

ROCE (avg)

25.81%

ROE (avg)

17.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.04

EV to EBIT

17.37

EV to EBITDA

13.40

EV to Capital Employed

3.10

EV to Sales

2.16

PEG Ratio

1.78

Dividend Yield

1.05%

ROCE (Latest)

17.82%

ROE (Latest)

15.18%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

DPS(Y)

Highest at Rs 20.00

DPR(Y)

Highest at 21.94%

NET SALES(Q)

Highest at Rs 787.02 cr

PBDIT(Q)

Highest at Rs 136.53 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 17.35%

PBT LESS OI(Q)

Highest at Rs 105.24 cr.

PAT(Q)

Highest at Rs 93.18 cr.

EPS(Q)

Highest at Rs 29.36

-5What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 296.12 Cr

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 231.43 cr

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Here's what is working for L G Balakrishnan

Dividend per Share (DPS) - Annually

Highest at Rs 20.00 and Grown

each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (Rs)

Net Sales - Quarterly

Highest at Rs 787.02 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 136.53 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 17.35%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 105.24 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 105.24 cr has Grown at 33.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 78.73 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 93.18 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 93.18 cr has Grown at 30.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 71.23 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 29.36

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Dividend Payout Ratio (DPR) - Annually

Highest at 21.94%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for L G Balakrishnan

Operating Cash Flow - Annually

Lowest at Rs 296.12 Cr

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 231.43 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents