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Last Updated on: 21 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo

LG Balakrishnan & Bros Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:15 am

Market Cap 4,127 Cr.
Current Price 1,294
High / Low 1,575/1,102
Stock P/E15.2
Book Value 563
Dividend Yield1.39 %
ROCE22.7 %
ROE17.7 %
Face Value 10.0
PEG Ratio0.66

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
G S Auto International Ltd 59.6 Cr. 41.1 54.8/24.148.5 15.60.00 %10.1 %3.21 % 5.00
Duncan Engineering Ltd 208 Cr. 563 902/38432.0 1490.62 %18.4 %13.9 % 10.0
Bharat Seats Ltd 685 Cr. 109 125/62.825.1 27.90.73 %15.3 %15.9 % 2.00
Automobile Corporation of Goa Ltd 1,300 Cr. 2,135 3,449/1,39028.3 3870.94 %18.7 %18.6 % 10.0
Akar Auto Industries Ltd 134 Cr. 125 170/87.821.5 44.40.48 %17.3 %13.1 % 5.00
Industry Average5,065.58 Cr690.4439.04148.220.62%16.36%15.36%5.85

All Competitor Stocks of

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales417498499393577574559521578581523539600
Expenses359407410331470458454436476474434451496
Operating Profit58918961107116105851021078988104
OPM %14%18%18%16%18%20%19%16%18%18%17%16%17%
Other Income621242038136716717
Interest3222233112222
Depreciation21212120212121202020201818
Profit before tax4170784310495907787938374101
Tax %33%23%25%23%25%25%29%24%23%22%34%25%25%
Net Profit27545833787164586772555575
EPS in Rs8.8617.1118.4710.5024.8222.6420.2418.5721.3722.9817.3317.6624.05

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8989391,0851,1511,1751,2581,4181,6881,5431,6092,1022,2032,262
Expenses7948509591,0091,0371,0951,2221,4791,3551,3551,7131,8181,875
Operating Profit10489126142138162196209187254389385387
OPM %12%10%12%12%12%13%14%12%12%16%19%17%17%
Other Income24594105152221354352
Interest18231818181612131611988
Depreciation29303339465358687983837977
Profit before tax5940809478103131143115180332340355
Tax %25%19%19%22%17%28%33%32%22%26%26%26%
Net Profit4433667466758910091133246252258
EPS in Rs14.0910.4220.0122.6820.2222.6127.4131.7229.1942.5178.2080.2582.15
Dividend Payout %20%18%15%15%15%15%8%16%17%24%19%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-25.00%100.00%12.12%-10.81%13.64%18.67%12.36%-9.00%46.15%84.96%2.44%
Change in YoY Net Profit Growth (%)0.00%125.00%-87.88%-22.93%24.45%5.03%-6.31%-21.36%55.15%38.81%-82.52%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:8%
5 Years:7%
3 Years:13%
TTM:9%
Compounded Profit Growth
10 Years:16%
5 Years:24%
3 Years:29%
TTM:9%
Stock Price CAGR
10 Years:16%
5 Years:40%
3 Years:28%
1 Year:-1%
Return on Equity
10 Years:17%
5 Years:18%
3 Years:19%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: December 14, 2024, 3:15 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital881616161631313131313132
Reserves2513003494015055706356758481,1011,3341,6101,763
Borrowings1681501771781341082181338410410411590
Other Liabilities196231264266292321338292415476403480503
Total Liabilities6226898068609471,0151,2211,1321,3781,7131,8732,2372,389
Fixed Assets228255316381407424532585552508487573648
CWIP3937101427379615324760
Investments191718196054552063104134176204
Other Assets3724084364514665105975187571,0861,2211,4411,477
Total Assets6226898068609471,0151,2211,1321,3781,7131,8732,2372,389

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +7096119117150128102203211202304343
Cash from Investing Activity +-63-60-114-87-78-87-180-55-121-182-295-299
Cash from Financing Activity +-3-39-4-33-60-5081-154-33-19-58-40
Net Cash Flow5-41-211-92-5572-483

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow104.00-79.00-24.00-35.00-40.0028.0088.00-9.0054.00170.00285.00281.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days484946475150484156514547
Inventory Days140139153155150143145150149168142133
Days Payable85981221271391471221281281067588
Cash Conversion Cycle103907875624671637611311392
Working Capital Days554847454235484845565648
ROCE %15%21%21%16%18%21%18%13%20%29%24%23%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters34.32%34.32%34.32%33.99%33.99%34.21%33.85%33.74%33.74%33.74%33.76%34.80%
FIIs6.78%7.72%8.03%8.96%9.46%9.17%8.77%8.14%7.81%7.62%7.46%6.45%
DIIs12.48%11.80%11.82%11.73%11.73%11.73%12.73%13.78%13.90%13.98%14.31%14.43%
Public46.42%46.16%45.83%45.28%44.81%44.87%44.64%44.33%44.52%44.64%44.46%44.33%
No. of Shareholders45,16643,60342,67343,04041,01136,27934,04635,86533,71134,06234,79537,430

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan2,719,4671.25289.49890,9182024-12-20205.24%
Nippon India Small Cap Fund890,9180.2594.84890,9182024-12-200%
Mahindra Manulife Large & Mid Cap Fund83,1730.638.85890,9182024-12-20-90.66%
HDFC Large and Mid Cap Fund - Regular Plan81,6940.078.7890,9182024-12-20-90.83%
Bandhan Transportation and Logistics Fund71,2122.267.58890,9182024-12-20-92.01%
Mahindra Manulife Flexi Cap Fund68,4220.717.28890,9182024-12-20-92.32%
Mahindra Manulife Balanced Advantage Fund55,0001.055.85890,9182024-12-20-93.83%
ITI ELSS Tax Saver Fund38,80024.13890,9182024-12-20-95.64%
Mahindra Manulife Equity Savings Fund32,7610.883.49890,9182024-12-20-96.32%
Mahindra Manulife Aggressive Hybrid Fund29,6790.383.16890,9182024-12-20-96.67%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)86.4480.2578.2042.5129.19
Diluted EPS (Rs.)86.4480.2578.2042.5129.19
Cash EPS (Rs.)111.32105.69104.7968.8653.76
Book Value[Excl.RevalReserv]/Share (Rs.)523.60435.68361.40280.68226.23
Book Value[Incl.RevalReserv]/Share (Rs.)523.60435.68361.40280.68226.23
Revenue From Operations / Share (Rs.)747.33701.76669.62512.54491.46
PBDIT / Share (Rs.)141.41129.36127.5882.7860.49
PBIT / Share (Rs.)116.58104.04101.0856.2335.44
PBT / Share (Rs.)116.18108.40105.6657.3836.58
Net Profit / Share (Rs.)86.4880.3878.2842.3228.71
NP After MI And SOA / Share (Rs.)86.4480.2578.2042.5129.19
PBDIT Margin (%)18.9218.4319.0516.1512.30
PBIT Margin (%)15.6014.8215.0910.977.21
PBT Margin (%)15.5415.4415.7711.197.44
Net Profit Margin (%)11.5711.4511.698.255.84
NP After MI And SOA Margin (%)11.5611.4311.678.295.93
Return on Networth / Equity (%)16.5318.4521.6715.1712.97
Return on Capital Employeed (%)21.4222.8826.5718.8213.38
Return On Assets (%)12.1313.4514.369.838.09
Long Term Debt / Equity (X)0.010.010.010.020.11
Total Debt / Equity (X)0.060.060.070.060.13
Asset Turnover Ratio (%)1.141.231.371.261.26
Current Ratio (X)2.102.382.051.701.65
Quick Ratio (X)1.371.491.200.970.69
Inventory Turnover Ratio (X)2.672.452.782.372.22
Dividend Payout Ratio (NP) (%)18.5118.6912.780.0041.30
Dividend Payout Ratio (CP) (%)14.3814.209.550.0022.22
Earning Retention Ratio (%)81.4981.3187.220.0058.70
Cash Earning Retention Ratio (%)85.6285.8090.450.0077.78
Interest Coverage Ratio (X)54.9661.4947.9125.8812.46
Interest Coverage Ratio (Post Tax) (X)33.7736.1427.6812.875.68
Enterprise Value (Cr.)3724.412072.731490.61873.95593.95
EV / Net Operating Revenue (X)1.590.940.700.540.38
EV / EBITDA (X)8.395.103.723.363.13
MarketCap / Net Operating Revenue (X)1.701.060.800.590.32
Retention Ratios (%)81.4881.3087.210.0058.69
Price / BV (X)2.431.701.491.090.71
Price / Net Operating Revenue (X)1.701.060.800.590.32
EarningsYield0.060.100.140.130.18

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 1,535.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Undervalued by 18.68% compared to the current share price 1,294.00

Intrinsic Value of as of December 21, 2024 is: 1,888.84

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Undervalued by 45.97% compared to the current share price 1,294.00

Last 5 Year EPS CAGR: 22.99%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 19.92%, which is a positive sign.
  2. The company has higher reserves (795.54 cr) compared to borrowings (135.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (142.38 cr) and profit (157.69 cr) over the years.
  1. The stock has a high average Working Capital Days of 47.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 81.83, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 11.57%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 21.42% (Industry Average ROCE: 16.36%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 16.53% (Industry Average ROE: 15.36%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 33.77
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.37
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 15.2 (Industry average Stock P/E: 39.04)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.06
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

LG Balakrishnan & Bros Ltd. is a Public Limited Listed company incorporated on 24/03/1956 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L29191TZ1956PLC000257 and registration number is 000257. Currently Company is involved in the business activities of Machining; treatment and coating of metals. Company’s Total Operating Revenue is Rs. 2007.98 Cr. and Equity Capital is Rs. 31.39 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Others6/16/13, Krishnarayapuram Road, Ganapathy, Coimbatore Tamil Nadu 641006info@lgb.co.in
http://www.lgb.co.in
Management
NamePosition Held
Mr. B VijayakumarExecutive Chairman
Mr. P PrabakaranManaging Director
Mr. Rajiv ParthasarathyExecutive Director
Mr. S SivakumarNon Executive Director
Mrs. Rajsri VijayakumarNon Executive Director
Mr. P ShanmugasundaramIndependent Director
Mr. V GovindarajuluIndependent Director
Mr. R Vidhya ShankarIndependent Director
Mrs. Kanchana ManavalanIndependent Director
Mr. G D RajkumarIndependent Director
Dr. Vinay Balaji NaiduIndependent Director

FAQ

What is the latest intrinsic value of LG Balakrishnan & Bros Ltd?

The latest intrinsic value of LG Balakrishnan & Bros Ltd as on 21 December 2024 is ₹1535.75, which is 18.68% higher than the current market price of ₹1,294.00. The stock has a market capitalization of 4,127 Cr. and recorded a high/low of 1,575/1,102 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,763 Cr and total liabilities of ₹2,389 Cr.

What is the Market Cap of LG Balakrishnan & Bros Ltd?

The Market Cap of LG Balakrishnan & Bros Ltd is 4,127 Cr..

What is the current Stock Price of LG Balakrishnan & Bros Ltd as on 21 December 2024?

The current stock price of LG Balakrishnan & Bros Ltd as on 21 December 2024 is 1,294.

What is the High / Low of LG Balakrishnan & Bros Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of LG Balakrishnan & Bros Ltd stocks is 1,575/1,102.

What is the Stock P/E of LG Balakrishnan & Bros Ltd?

The Stock P/E of LG Balakrishnan & Bros Ltd is 15.2.

What is the Book Value of LG Balakrishnan & Bros Ltd?

The Book Value of LG Balakrishnan & Bros Ltd is 563.

What is the Dividend Yield of LG Balakrishnan & Bros Ltd?

The Dividend Yield of LG Balakrishnan & Bros Ltd is 1.39 %.

What is the ROCE of LG Balakrishnan & Bros Ltd?

The ROCE of LG Balakrishnan & Bros Ltd is 22.7 %.

What is the ROE of LG Balakrishnan & Bros Ltd?

The ROE of LG Balakrishnan & Bros Ltd is 17.7 %.

What is the Face Value of LG Balakrishnan & Bros Ltd?

The Face Value of LG Balakrishnan & Bros Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE