Fundamental Analysis

LG BALAKRISHNAN & BROS LTD.  
Ticker : 500250
BUY: ₹711.40
Target:  ₹815
 

LG Balakrishnan & Bros Ltd is a major manufacturer of chains, sprockets, and metal-formed parts for automotive applications. On a consolidated basis, in Q1FY23, the company recorded net sales and other operating income of Rs 520.95 crore, higher by 32.71 per cent than Rs 392.55 crore reported in Q1FY22. The operating profit was recorded at Rs 88.53 crore in Q1FY23, a robust rise of 35.7 per cent as compared to an operating profit of Rs 65.24 crore in Q1FY22. Q1FY23 recorded a net profit of Rs 58.41 crore in comparison with a net profit of Rs 33.09 crore in Q1FY22, giving a significant rise of 76.52 per cent. The company continues to focus on creating new products as well as expanding the use of current offerings, which are tailored to the different needs of global customers. The company is also setting up new plants in Nagpur to manufacture industrial chains, conveyor chains, automotive components, and assemblies. Hence, bearing a positive outlook regarding the company’s future, we recommend BUY.