L.G. Balakrishnan & Bros Limited

BSE:500250 Stock Report

Market Cap: ₹38.7b

L.G. Balakrishnan & Bros Valuation

Is 500250 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 500250 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 500250 (₹1230.7) is trading above our estimate of fair value (₹903.84)

Significantly Below Fair Value: 500250 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 500250?

Key metric: As 500250 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 500250. This is calculated by dividing 500250's market cap by their current earnings.
What is 500250's PE Ratio?
PE Ratio13.7x
Earnings₹2.83b
Market Cap₹38.67b

Price to Earnings Ratio vs Peers

How does 500250's PE Ratio compare to its peers?

The above table shows the PE ratio for 500250 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average81.6x
522257 Rajoo Engineers
182.2xn/a₹48.4b
HARSHA Harsha Engineers International
33.3x20.8%₹43.7b
JNKINDIA JNK India
56.1x38.4%₹34.0b
501455 Greaves Cotton
54.8xn/a₹40.6b
500250 L.G. Balakrishnan & Bros
13.7x7.5%₹38.7b

Price-To-Earnings vs Peers: 500250 is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (81.6x).

Price to Earnings Ratio vs Industry

How does 500250's PE Ratio compare vs other companies in the IN Machinery Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
504220 W.S. Industries (India)
4.8xn/aUS$87.63m
No more companies available in this PE range
500250 13.7xIndustry Avg. 35.5xNo. of Companies24PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 500250 is good value based on its Price-To-Earnings Ratio (13.7x) compared to the Indian Machinery industry average (36x).

Price to Earnings Ratio vs Fair Ratio

What is 500250's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

500250 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ratio23.9x

Price-To-Earnings vs Fair Ratio: 500250 is good value based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 500250 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹1,230.70
₹1,616.00
+31.3%
8.2%₹1,748.00₹1,484.00n/a2
Nov ’25₹1,357.20
₹1,616.00
+19.1%
8.2%₹1,748.00₹1,484.00n/a2
Oct ’25₹1,386.80
₹1,585.50
+14.3%
6.4%₹1,687.00₹1,484.00n/a2
Sep ’25₹1,375.50
₹1,585.50
+15.3%
6.4%₹1,687.00₹1,484.00n/a2
Aug ’25₹1,393.75
₹1,508.00
+8.2%
11.9%₹1,687.00₹1,329.00n/a2
Jul ’25₹1,472.25
₹1,500.00
+1.9%
9.8%₹1,687.00₹1,329.00n/a3
Jun ’25₹1,238.35
₹1,500.00
+21.1%
9.8%₹1,687.00₹1,329.00n/a3
May ’25₹1,278.65
₹1,500.00
+17.3%
9.8%₹1,687.00₹1,329.00n/a3
Apr ’25₹1,254.20
₹1,434.67
+14.4%
5.2%₹1,491.00₹1,329.00n/a3
Mar ’25₹1,176.15
₹1,487.50
+26.5%
0.2%₹1,491.00₹1,484.00n/a2
Feb ’25₹1,281.10
₹1,487.50
+16.1%
0.2%₹1,491.00₹1,484.00n/a2
Jan ’25₹1,245.25
₹1,479.50
+18.8%
0.3%₹1,484.00₹1,475.00n/a2
Sep ’24₹1,059.45
₹1,091.00
+3.0%
32.3%₹1,443.00₹739.00₹1,375.502
Aug ’24₹1,076.60
₹1,091.00
+1.3%
32.3%₹1,443.00₹739.00₹1,393.752
Jul ’24₹1,141.10
₹850.50
-25.5%
13.1%₹962.00₹739.00₹1,472.252
Jun ’24₹797.75
₹850.50
+6.6%
13.1%₹962.00₹739.00₹1,238.352
May ’24₹868.95
₹848.00
-2.4%
12.9%₹957.00₹739.00₹1,278.652
Apr ’24₹740.45
₹848.00
+14.5%
12.9%₹957.00₹739.00₹1,254.202
Mar ’24₹687.25
₹848.00
+23.4%
12.9%₹957.00₹739.00₹1,176.152
Dec ’23₹713.10
₹818.00
+14.7%
16.6%₹954.00₹682.00₹1,183.802
Nov ’23₹732.05
₹818.00
+11.7%
16.6%₹954.00₹682.00₹1,088.102

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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