NSEI:LGBBROSLTD

Stock Analysis Report

L.G. Balakrishnan & Bros

Executive Summary

L.G. Balakrishnan & Bros Limited manufactures and sells chains, sprockets, and metal formed parts for automotive applications in India.

Snowflake

Fundamentals

Flawless balance sheet and good value.

Share Price & News

How has L.G. Balakrishnan & Bros's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGBBROSLTD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

LGBBROSLTD

-0.2%

IN Machinery

-0.3%

IN Market


1 Year Return

-33.6%

LGBBROSLTD

-12.7%

IN Machinery

3.8%

IN Market

Return vs Industry: LGBBROSLTD underperformed the Indian Machinery industry which returned -12.7% over the past year.

Return vs Market: LGBBROSLTD underperformed the Indian Market which returned 3.8% over the past year.


Shareholder returns

LGBBROSLTDIndustryMarket
7 Day-5.1%-0.2%-0.3%
30 Day0.6%0.2%1.6%
90 Day-21.4%8.2%7.6%
1 Year-32.6%-33.6%-11.3%-12.7%5.9%3.8%
3 Year1.7%-1.5%8.4%4.3%35.4%28.5%
5 Year-13.2%-17.7%23.7%16.7%38.1%25.2%

Price Volatility Vs. Market

How volatile is L.G. Balakrishnan & Bros's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is L.G. Balakrishnan & Bros undervalued compared to its fair value and its price relative to the market?

9.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LGBBROSLTD (₹270.15) is trading above our estimate of fair value (₹42.99)

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


Price To Earnings Ratio

PE vs Industry: LGBBROSLTD is good value based on its PE Ratio (9.3x) compared to the Machinery industry average (13.3x).

PE vs Market: LGBBROSLTD is good value based on its PE Ratio (9.3x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: LGBBROSLTD is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: LGBBROSLTD is good value based on its PB Ratio (1.3x) compared to the IN Machinery industry average (1.3x).


Next Steps

Future Growth

How is L.G. Balakrishnan & Bros forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

17.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LGBBROSLTD's forecast earnings growth (17.4% per year) is above the savings rate (7.6%).

Earnings vs Market: LGBBROSLTD's earnings (17.4% per year) are forecast to grow slower than the Indian market (18.1% per year).

High Growth Earnings: LGBBROSLTD's earnings are forecast to grow, but not significantly.

Revenue vs Market: LGBBROSLTD's revenue (12.3% per year) is forecast to grow faster than the Indian market (11.5% per year).

High Growth Revenue: LGBBROSLTD's revenue (12.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if LGBBROSLTD's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has L.G. Balakrishnan & Bros performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGBBROSLTD has high quality earnings.

Growing Profit Margin: LGBBROSLTD's current net profit margins (5.5%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: LGBBROSLTD's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: LGBBROSLTD's earnings growth over the past year (2%) is below its 5-year average (9.1% per year).

Earnings vs Industry: LGBBROSLTD earnings growth over the past year (2%) underperformed the Machinery industry 5.5%.


Return on Equity

High ROE: LGBBROSLTD's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is L.G. Balakrishnan & Bros's financial position?


Financial Position Analysis

Short Term Liabilities: LGBBROSLTD's short term assets (₹5.6B) exceeds its short term liabilities (₹4.1B)

Long Term Liabilities: LGBBROSLTD's short term assets (₹5.6B) exceeds its long term liabilities (1.3B)


Debt to Equity History and Analysis

Debt Level: LGBBROSLTD's debt to equity ratio (32%) is considered satisfactory.

Reducing Debt: LGBBROSLTD's debt to equity ratio has reduced from 47.3% to 32% over the past 5 years.

Debt Coverage: LGBBROSLTD's debt is well covered by operating cash flow (46.7%).

Interest Coverage: LGBBROSLTD's interest payments on its debt are well covered by EBIT (10.6x coverage).


Balance Sheet

Inventory Level: LGBBROSLTD has a high level of physical assets or inventory.

Debt Coverage by Assets: LGBBROSLTD's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

What is L.G. Balakrishnan & Bros's current dividend yield, its reliability and sustainability?

1.85%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.4%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: LGBBROSLTD's dividend (1.85%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: LGBBROSLTD's dividend (1.85%) is low compared to the top 25% of dividend payers in the Indian market (2.42%).


Stability and Growth of Payments

Stable Dividend: LGBBROSLTD's dividend payments have been volatile in the past 10 years.

Growing Dividend: LGBBROSLTD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.2%), LGBBROSLTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of L.G. Balakrishnan & Bros's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average management tenure


CEO

Balakrishnan Vijayakumar (66yo)

0yrs

Tenure

₹37,483,000

Compensation

Mr. Balakrishnan Vijayakumar has been Chairman at L.G. Balakrishnan & Bros Limited since October 15, 2008 and its Director since November 25, 1986. He serves as Managing Director of L.G. Balakrishnan & Bro ...


CEO Compensation Analysis

Compensation vs Market: Balakrishnan's total compensation ($USD523.39K) is above average for companies of similar size in the Indian market ($USD33.51K).

Compensation vs Earnings: Balakrishnan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.0yrs

Average Tenure

52yo

Average Age

Experienced Management: LGBBROSLTD's management team is seasoned and experienced (10 years average tenure).


Board Age and Tenure

11.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: LGBBROSLTD's board of directors are seasoned and experienced ( 11.5 years average tenure).


Insider Trading

Insider Buying: LGBBROSLTD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Buy₹1,484,08826 Sep 19
LG Corp.
EntityCompany
Shares4,500
Max Price₹329.80
Sell₹6,755,68419 Sep 19
Vijayakumar Rajvirdhan
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max Price₹337.78
Buy₹699,60713 Aug 19
K. Arjun
EntityIndividual
Shares2,443
Max Price₹286.37
Buy₹3,650,17313 Aug 19
Moonlight Family Private Trust
EntityCompany
Shares12,450
Max Price₹293.19
Buy₹2,114,53109 Aug 19
Moonlight Family Private Trust
EntityCompany
Shares8,093
Max Price₹261.28
Buy₹274,28529 Jun 19
LG Corp.
EntityCompany
Shares800
Max Price₹342.86
Buy₹590,72528 Jun 19
LG Corp.
EntityCompany
Shares1,700
Max Price₹347.49
Buy₹895,92826 Jun 19
LG Corp.
EntityCompany
Shares2,500
Max Price₹358.37
Buy₹810,97722 Jun 19
LG Corp.
EntityCompany
Shares2,260
Max Price₹358.84

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Balakrishnan Vijayakumar (66yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹37.48m
  • P. Prabakaran (60yo)

    MD & Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹10.99m
  • A. Mohan (59yo)

    Chief Operating Officer - Forging Divisions

    • Tenure: 13.5yrs
  • M. Lakshmi Joshi (51yo)

    GM of Legal

    • Tenure: 0yrs
    • Compensation: ₹2.96m
  • N. Rengaraj (50yo)

    Chief Financial Officer

    • Tenure: 10yrs
    • Compensation: ₹4.06m
  • P. Subbiah (53yo)

    General Manager

    • Tenure: 0yrs
  • N. Kumar (48yo)

    General Manager

    • Tenure: 0yrs
  • P. S. Ramalingam (56yo)

    Deputy General Manager

    • Tenure: 0yrs
  • J. Prakash (48yo)

    Deputy General Manager

    • Tenure: 0yrs
  • M. Dhanasekar (48yo)

    Deputy General Manager

    • Tenure: 0yrs

Board Members

  • Balakrishnan Vijayakumar (66yo)

    Chairman & MD

    • Tenure: 0yrs
    • Compensation: ₹37.48m
  • P. Shanmugasundaram (71yo)

    Non-Executive Independent Director

    • Tenure: 18.5yrs
    • Compensation: ₹310.00k
  • P. Prabakaran (60yo)

    MD & Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹10.99m
  • V. Govindarajulu (63yo)

    Non-Executive Independent Director

    • Tenure: 21.4yrs
    • Compensation: ₹310.00k
  • Sitaraman Sivakumar (67yo)

    Non-Executive Non-Independent Director

    • Tenure: 23.4yrs
    • Compensation: ₹130.00k
  • R. Shankar (49yo)

    Non-Executive Independent Director

    • Tenure: 11.5yrs
    • Compensation: ₹140.00k
  • Rajsri Vijayakumar (38yo)

    Non-Executive Director

    • Tenure: 13.1yrs
    • Compensation: ₹130.00k
  • Vijayakumar Rajvirdhan (36yo)

    Non-Executive Director

    • Tenure: 9yrs
    • Compensation: ₹130.00k
  • Kanchana Manavalan (57yo)

    Additional Independent Director

    • Tenure: 0.8yrs
    • Compensation: ₹30.00k
  • G.D. Rajkumar (51yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

L.G. Balakrishnan & Bros Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: L.G. Balakrishnan & Bros Limited
  • Ticker: LGBBROSLTD
  • Exchange: NSEI
  • Founded: 1937
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹8.664b
  • Shares outstanding: 31.39m
  • Website: https://www.lgb.co.in

Location

  • L.G. Balakrishnan & Bros Limited
  • 6/16/13, Krishnarayapuram Road
  • Ganapathy
  • Coimbatore
  • Tamil Nadu
  • 641006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500250BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1996
LGBBROSLTDNSEI (National Stock Exchange of India)YesEquity SharesININRJan 1996

Biography

L.G. Balakrishnan & Bros Limited manufactures and sells chains, sprockets, and metal formed parts for automotive applications in India. It operates through Transmission, Metal Forming, and Others segments. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/18 12:47
End of Day Share Price2019/11/18 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.