Automobile and Auto Components · NSE/BSE: LGBBROSLTD
LG Balakrishnan & Bros Limited
Auto Components & Equipments
Market Cap ₹0.05L Cr
Verdict: High
Quality Scores
Multi-Bagger
78/100
Compounder Quality
86/100
Management Credibility
82/100
Governance
78/100
Cash Flow Quality
88/100
AI Summary
L.G. Balakrishnan & Bros Ltd (LGBB) is a dominant player in the automotive chain and sprocket segment, commanding a significant market share in India's two-wheeler industry. Over the last decade, the company has successfully evolved from a component manufacturer into a diversified transmission and metal forming specialist. Revenue has grown at a 10-year CAGR of 10%, while PAT has outpaced this at 17%, reflecting significant operating leverage. The company maintains a lean balance sheet and has transitioned into being almost debt-free while scaling operations. Its Q3 FY26 segment data confirms…
Top Opportunities
- Dominant market share in Indian 2W transmission chains
- Almost zero net-debt status
- Strong historical 5-year PAT CAGR of 26%
Top Risks
- Promoter holding significantly decreased to 34.8%
- Negative Free Cash Flow in FY25 and FY26 due to heavy Capex
- Stagnant OPM percentage (16-17%) despite revenue growth
Latest report: Read the annual report summary →
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