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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of LG Balakrishnan & Bros Ltd

About the Company - LG Balakrishnan & Bros Ltd

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
Mr. V GovindarajuluIndependent Director
Mr. P ShanmugasundaramIndependent Director
Mrs. Rajsri VijayakumarNon Executive Director
Mr. R Vidhya ShankarIndependent Director
Mrs. Kanchana ManavalanIndependent Director
Mr. G D RajkumarIndependent Director
Dr. Vinay Balaji NaiduIndependent Director

Basic Stock Data of LG Balakrishnan & Bros Ltd

Last Updated: June 17, 2024, 8:26 pm

Market Cap 3,941 Cr.
Current Price 1,255
High / Low1,425/848
Stock P/E14.8
Book Value 523
Dividend Yield1.27 %
ROCE22.7 %
ROE17.7 %
Face Value 10.0
PEG Ratio0.64

LG Balakrishnan & Bros Ltd Quarterly Results

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

LG Balakrishnan & Bros Ltd Quarterly Chart

LG Balakrishnan & Bros Ltd Profit & Loss

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%

LG Balakrishnan & Bros Ltd Profit & Loss Yearly Chart

LG Balakrishnan & Bros Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:7%
3 Years:13%
TTM:6%
Compounded Profit Growth
10 Years:16%
5 Years:24%
3 Years:29%
TTM:13%
Stock Price CAGR
10 Years:21%
5 Years:29%
3 Years:44%
1 Year:46%
Return on Equity
10 Years:17%
5 Years:18%
3 Years:19%
Last Year:18%

Last Updated: June 8, 2024, 8:02 pm

LG Balakrishnan & Bros Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital88816161616313131313131
Reserves2252513003494015055706356758481,1011,3341,439
Borrowings1381681501771781341082181338410410471
Other Liabilities184196231264266292321338292415476403531
Total Liabilities5546226898068609471,0151,2211,1321,3781,7131,8732,072
Fixed Assets197228255316381407424532585552508487468
CWIP339371014273796153272
Investments14191718196054552063104134155
Other Assets3413724084364514665105975187571,0861,2211,378
Total Assets5546226898068609471,0151,2211,1321,3781,7131,8732,072

LG Balakrishnan & Bros Ltd Reserves and Borrowings Chart

LG Balakrishnan & Bros Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 387096119117150128102203211202167
Cash from Investing Activity -30-63-60-114-87-78-87-180-55-121-182-157
Cash from Financing Activity -7-3-39-4-33-60-5081-154-33-19-58
Net Cash Flow15-41-211-92-5572-48

LG Balakrishnan & Bros Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days444849464751504841565145
Inventory Days151140139153155150143145150149168142
Days Payable88859812212713914712212812810675
Cash Conversion Cycle1081039078756246716376113113
Working Capital Days545548474542354848455656
ROCE %22%15%21%21%16%18%21%18%13%20%29%24%

LG Balakrishnan & Bros Ltd Financial Efficiency Indicators Chart

LG Balakrishnan & Bros Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters41.98%40.05%34.32%34.32%34.32%33.99%33.99%34.21%33.85%33.74%33.74%33.74%
FIIs3.32%5.00%6.78%7.72%8.03%8.96%9.46%9.17%8.77%8.14%7.81%7.62%
DIIs13.63%12.86%12.48%11.80%11.82%11.73%11.73%11.73%12.73%13.78%13.90%13.98%
Public41.07%42.10%46.42%46.16%45.83%45.28%44.81%44.87%44.64%44.33%44.52%44.64%
No. of Shareholders33,58635,61345,16643,60342,67343,04041,01136,27934,04635,86533,71134,062

LG Balakrishnan & Bros Ltd Shareholding Pattern Chart

No. of LG Balakrishnan & Bros Ltd Shareholders

LG Balakrishnan & Bros Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan2,719,4671.25289.4971,2122024-06-173718.83%
Nippon India Small Cap Fund890,9180.2594.8471,2122024-06-171151.08%
Mahindra Manulife Large & Mid Cap Fund83,1730.638.8571,2122024-06-1716.8%
HDFC Large and Mid Cap Fund - Regular Plan81,6940.078.771,2122024-06-1714.72%
Bandhan Transportation and Logistics Fund71,2122.267.5871,2122024-06-170%
Mahindra Manulife Flexi Cap Fund68,4220.717.2871,2122024-06-17-3.92%
Mahindra Manulife Balanced Advantage Fund55,0001.055.8571,2122024-06-17-22.77%
ITI ELSS Tax Saver Fund38,80024.1371,2122024-06-17-45.51%
Mahindra Manulife Equity Savings Fund32,7610.883.4971,2122024-06-17-54%
Mahindra Manulife Aggressive Hybrid Fund29,6790.383.1671,2122024-06-17-58.32%

LG Balakrishnan & Bros Ltd ROCE Trend

LG Balakrishnan & Bros Ltd EPS Trend

LG Balakrishnan & Bros Ltd 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) (%)0.0018.6912.780.0041.30
Dividend Payout Ratio (CP) (%)0.0014.209.550.0022.22
Earning Retention Ratio (%)0.0081.3187.220.0058.70
Cash Earning Retention Ratio (%)0.0085.8090.450.0077.78
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 (%)0.0081.3087.210.0058.69
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

LG Balakrishnan & Bros Ltd Profitability Ratios (%)

LG Balakrishnan & Bros Ltd Liquidity Ratios

LG Balakrishnan & Bros Ltd Liquidity Ratios (%)

LG Balakrishnan & Bros Ltd Interest Coverage Ratios (%)

LG Balakrishnan & Bros Ltd Valuation Ratios

Fair Value

Fair Value: 1,387.45

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.

Undervalued: 10.55% compared to the current price 1255

Intrinsic Value: 1,706.44

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 35.97% compared to the current price ₹1255

Last 5 Year EPS CAGR: 22.99%

*Investments are subject to market risks

Strength and Weakness of LG Balakrishnan & Bros Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 19.83%, which is a positive sign.
  2. The company has higher reserves (664.08 cr) compared to borrowings (135.92 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 48.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 83.17, which may not be favorable.

FAQ

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

The latest fair value of LG Balakrishnan & Bros Ltd is ₹1387.45.

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

The Market Cap of LG Balakrishnan & Bros Ltd is 3,941 Cr..

What is the current Stock Price of LG Balakrishnan & Bros Ltd as on 18 June 2024?

The current stock price of LG Balakrishnan & Bros Ltd as on 18 June 2024 is ₹1,255.

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

In FY 2024, the High / Low of LG Balakrishnan & Bros Ltd stocks is 1,425/848.

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

The Stock P/E of LG Balakrishnan & Bros Ltd is 14.8.

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

The Book Value of LG Balakrishnan & Bros Ltd is 523.

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

The Dividend Yield of LG Balakrishnan & Bros Ltd is 1.27 %.

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 LG Balakrishnan & Bros Ltd. 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