NOT FOR DISTRIBUTION
Header cover image

Market Cap

₹881.3m

Last Updated

2021/04/21 12:07 UTC

Data Sources

Company Financials

Executive Summary

LGB Forge Limited manufactures and sells forged and machined components in India. More Details


Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has LGB Forge's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LGBFORGE is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: LGBFORGE's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-1.3%

LGBFORGE

-1.3%

IN Machinery

-0.8%

IN Market


1 Year Return

85.0%

LGBFORGE

76.2%

IN Machinery

62.7%

IN Market

Return vs Industry: LGBFORGE exceeded the Indian Machinery industry which returned 78.9% over the past year.

Return vs Market: LGBFORGE exceeded the Indian Market which returned 66% over the past year.


Shareholder returns

LGBFORGEIndustryMarket
7 Day-1.3%-1.3%-0.8%
30 Day-1.3%-2.8%-1.7%
90 Day-1.3%9.8%2.0%
1 Year85.0%85.0%78.8%76.2%65.2%62.7%
3 Year-7.3%-7.5%3.0%-1.6%21.6%15.5%
5 Year-31.3%-31.5%52.2%42.5%76.9%63.3%

Long-Term Price Volatility Vs. Market

How volatile is LGB Forge's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is LGB Forge undervalued compared to its fair value and its price relative to the market?

93.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LGBFORGE (₹3.7) is trading above our estimate of fair value (₹0.86)

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


Price To Earnings Ratio

PE vs Industry: LGBFORGE is poor value based on its PE Ratio (93.4x) compared to the IN Machinery industry average (22.3x).

PE vs Market: LGBFORGE is poor value based on its PE Ratio (93.4x) compared to the Indian market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LGBFORGE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LGBFORGE is overvalued based on its PB Ratio (2.9x) compared to the IN Machinery industry average (1.4x).


Future Growth

How is LGB Forge forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

17.2%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as LGB Forge has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has LGB Forge performed over the past 5 years?

32.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LGBFORGE has high quality earnings.

Growing Profit Margin: LGBFORGE's current net profit margins (1.2%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: LGBFORGE has become profitable over the past 5 years, growing earnings by 32% per year.

Accelerating Growth: LGBFORGE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: LGBFORGE had negative earnings growth (-20.2%) over the past year, making it difficult to compare to the Machinery industry average (-7%).


Return on Equity

High ROE: LGBFORGE's Return on Equity (3%) is considered low.


Financial Health

How is LGB Forge's financial position?


Financial Position Analysis

Short Term Liabilities: LGBFORGE's short term assets (₹449.8M) exceed its short term liabilities (₹371.6M).

Long Term Liabilities: LGBFORGE's short term assets (₹449.8M) exceed its long term liabilities (₹35.7M).


Debt to Equity History and Analysis

Debt Level: LGBFORGE's debt to equity ratio (29.9%) is considered satisfactory.

Reducing Debt: LGBFORGE's debt to equity ratio has reduced from 208.3% to 29.9% over the past 5 years.

Debt Coverage: LGBFORGE's debt is well covered by operating cash flow (75.4%).

Interest Coverage: LGBFORGE's interest payments on its debt are not well covered by EBIT (1.1x coverage).


Balance Sheet


Dividend

What is LGB Forge current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate LGBFORGE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate LGBFORGE's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if LGBFORGE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if LGBFORGE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LGBFORGE's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Vijayakumar Rajvirdhan (37 yo)

3.25yrs

Tenure

₹3,300,000

Compensation

Mr. Vijayakumar Rajvirdhan, B.Sc, IME has been Managing Director of LGB Forge Ltd. since 2018. Mr. Rajvirdhan served as Compliance Officer of LGB Forge Ltd. from October 25, 2012 to 30 January 2014 and its...


CEO Compensation Analysis

Compensation vs Market: Vijayakumar's total compensation ($USD43.75K) is about average for companies of similar size in the Indian market ($USD41.67K).

Compensation vs Earnings: Vijayakumar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: LGBFORGE's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: LGBFORGE's board of directors are seasoned and experienced ( 13 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

LGB Forge Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LGB Forge Limited
  • Ticker: LGBFORGE
  • Exchange: NSEI
  • Founded: 2006
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹881.349m
  • Shares outstanding: 238.20m
  • Website: https://www.lgbforge.co.in

Number of Employees


Location

  • LGB Forge Limited
  • 6/16/13, Krishnarayapuram Road
  • Ganapathy
  • Coimbatore
  • Tamil Nadu
  • 641006
  • India

Listings


Biography

LGB Forge Limited manufactures and sells forged and machined components in India. The company offers auto, electrical, and transmission forged components to automobiles and non-automotive segments. Its pro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/21 12:07
End of Day Share Price2021/04/20 00:00
Earnings2020/12/31
Annual Earnings2020/03/31


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.