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LG Balakrishnan & Bros Limited (LGBBROSLTD) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹51.5B

LB LG Balakrishnan & Bros Limited LGBBROSLTD · NSE
Price₹1,603
Fair Value₹1,785
Upside+11.4%
Quality54/100
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Expensive Growth
Solidly profitable · 10.4% net margin
Low debt · negative free cash flow
1.38% dividend yield
Ranks above peers (9/13)
Moderate moat 52/100
Evidence: High Range ₹1,249 – ₹2,286 Share as image

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 4 days ago

Share price +3.5% over the past month.

A solid business, screening 11% undervalued on our models.

What matters now

  • A fairly wide model range (₹1,249 to ₹2,286) leaves room in how you read the outcome.
  • Our model range runs from ₹1,249 (bear) to ₹2,286 (bull), base ₹1,785. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 54/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

₹2,008 ₹262.09 Fair Value ₹1,785 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ₹262.09 – ₹2,008 · fair‑value band ₹1,249 – ₹2,286 · the ₹1,603 price screens below the ₹1,785 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

LG Balakrishnan & Bros Limited (LGBBROSLTD) currently trades at ₹1,603, while our model-based Fair Value estimate is ₹1,785, implying the stock looks roughly 11.4% undervalued today. The Quality Score stands at 54/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, LG Balakrishnan & Bros Limited generated revenue of ₹30.8B at a net margin of 10.4%. Revenue grew 21.8% year over year. It earns a return on equity of 15.7%. The balance sheet holds a net cash position of ₹332M. Fundamentals as of Aug 13, 2026

Our scenario range runs from ₹1,249 (bear case) to ₹2,286 (bull case); at ₹1,603, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 33% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -52% fair-value upside, at 11%, LGBBROSLTD screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income ₹671.86 ₹892.34 ₹2,606 76
ROIC Compounder ₹914.70 ₹1,204 ₹1,599 72
Gordon GGM ₹182.48 ₹379.42 ₹601.91 70
All 17 models by family
DCF Models
Owner Earnings ₹308.70 ₹484.21 ₹776.74 31
Earnings-Based
Graham-Dodd ₹679.64 ₹2,807 ₹3,824 54
Lynch FV ₹707.32 ₹1,010 ₹1,314 50
PEG = 1.0 ₹707.32 ₹1,010 ₹1,314 46
EPV ₹850.49 ₹981.32 ₹1,096 59
Dividend Discount
Gordon GGM ₹182.48 ₹379.42 ₹601.91 70
DDM Multi-Stage ₹182.48 ₹319.93 ₹398.21 61
Multiples
P/E Multiple ₹1,649 ₹2,199 ₹2,749 63
P/S Multiple ₹867.94 ₹1,157 ₹1,447 58
P/B Multiple ₹1,274 ₹1,699 ₹2,124 55
EV/EBIT ₹1,625 ₹2,145 ₹2,665 53
EV/EBITDA ₹1,431 ₹1,886 ₹2,341 54
EV/Revenue ₹875.57 ₹1,223 ₹1,570 43
Asset-Based
NCAV (Graham) ₹337.65 ₹452.45 ₹675.30 50
Economic Profit
Residual Income ₹671.86 ₹892.34 ₹2,606 76
ROIC Compounder ₹914.70 ₹1,204 ₹1,599 72
Growth Earnings
Growth-Adj P/E ₹1,249 ₹1,785 ₹2,320 68

Widest divergence: Growth Earnings (₹1,785) versus Dividend Discount (₹319.93). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) ₹30.8B
Revenue growth (YoY) +21.8%
Net margin 10.4%
Return on equity 15.7%
Free cash flow −₹113M FY2026
P/E ratio 16.0
More key figures
Operating margin 10.3%
EPS (TTM) ₹100.03
Dividend yield 1.4%
EPS growth (YoY) -17.0%
Net cash ₹332M FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 55 · Market factors (momentum, volatility) 57

Profitability 63
Margins and returns on capital today
Quality Growth 46
Are margins and returns improving?
Cashflow 26
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 26
Disciplined investing over empire-building
Low Volatility 75
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 57
Distance to the 52-week high (market factor)
Net Issuance 75
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

L.G. Balakrishnan & Bros Limited manufactures and sells chains, sprockets, and metal formed parts for automotive and industrial applications in India and internationally. The company operates through Transmission and Metal Forming segments.

Full company description

L.G. Balakrishnan & Bros Limited manufactures and sells chains, sprockets, and metal formed parts for automotive and industrial applications in India and internationally. The company operates through Transmission and Metal Forming segments. It offers transmission products; sprockets and gears; sealed and standard, silent, bush and roller, and special application chains; mechanical, hydraulic, between chain, and compact tensioners, as well as guides; scooter, 4 wheelers and tractors, cogged V, poly V, and timing belts; scooter components, such as clutch weight roller, clutch slider piece, face comp movable drive, 5G tech belts, cushion bush kit, pivot arm set, and starter pinion gear drive; and rubber products, brake shoes, fine blanked components, and precision machined parts. The company also provides metal forming products consisting of fine blanking for precision sheet metal parts, and machined components, as well as wire drawing products for other chain manufacturing plants, spring steel suppliers, and umbrella manufacturers. It markets its products under the Rolon brand. L.G. Balakrishnan & Bros Limited was founded in 1937 and is based in Coimbatore, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

LG Balakrishnan & Bros Limited reported revenue of ₹30.8B in FY2026 versus ₹21.0B in FY2022, a compound +10.0%/yr. Reported net income was ₹3.2B in FY2026, compounding +6.7%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹30.8B
Latest YoY
+19.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.8%
Avg. growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.1%
Revenue +10.0%/yr
FY22 ₹21.0B
FY23 ₹22.0B
FY24 ₹23.5B
FY25 ₹25.8B
FY26 ₹30.8B
Net income +6.7%/yr
FY22 ₹2.5B
FY23 ₹2.5B
FY24 ₹2.7B
FY25 ₹3.0B
FY26 ₹3.2B
Character of growth · EPS growth decomposed (2015-2026) +17.9 % p.a.
Revenue per share +9.0 pp

of which total revenue +9.1 pp · buybacks/dilution −0.1 pp

EBIT margin +16.3 pp
Tax rate −0.1 pp
Residual (interest, one-offs) −7.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "LG Balakrishnan & Bros Limited Fair Value". https://www.fairvalue-calculator.com/stock/LGBBROSLTD

Peer Group

Auto Parts · 639 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 54 · Above median
Fair Value upside +11% · Above median
Return on equity (TTM) 16% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 10% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 22% · Top 25%
Dividend yield (TTM) 1.4% · Below median
Debt / equity 0.03× · Lower than median

Valuation Multiples vs Auto Parts median · lower = cheaper

P/E (TTM) 16.0× · Cheaper than median
P/B 2.39× · Pricier than median
P/S (TTM) 1.67× · Pricier than median
EV/EBITDA 10.2× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 49 · sector 17
FUTURE 100 · sector 24
PAST 63 · sector 26
HEALTH 99 · sector 95
DIVIDEND 28 · sector 34

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Auto Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Magna International Inc MGAN 1,122 MXN 1,142 MXN +2%
Samvardhana Motherson International Limited MOTHERSON ₹169.50 ₹80.63 -52%
Bosch Limited BOSCHLTD ₹46,750 ₹13,061 -72%
Bharat Forge Limited BHARATFORG ₹2,082 ₹393.20 -81%
Uno Minda Limited UNOMINDA ₹1,232 ₹426.57 -65%
Schaeffler India Limited SCHAEFFLER ₹4,126 ₹1,412 -66%
Hankook Tire & Technology Co 161390 71,500 KRW 196,479 KRW +175%
Sona BLW Precision Forgings Limited SONACOMS ₹799.90 ₹207.06 -74%
Balkrishna Industries Limited BALKRISIND ₹2,497 ₹1,211 -51%

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Frequently asked questions

Is LG Balakrishnan & Bros Limited (LGBBROSLTD) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ₹1,785 versus a price of ₹1,603, about +11% (undervalued).
What is the fair value of LGBBROSLTD?
Our model-based fair value for LG Balakrishnan & Bros Limited is ₹1,785 (as of Aug 13, 2026), built from audited fundamentals. The current price is ₹1,603.
What is the quality score of LGBBROSLTD?
LG Balakrishnan & Bros Limited has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of LG Balakrishnan & Bros Limited (LGBBROSLTD)?
LG Balakrishnan & Bros Limited reported trailing-twelve-month revenue of about ₹30.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of LGBBROSLTD?
The net profit margin of LG Balakrishnan & Bros Limited is about 10.4%, meaning it keeps roughly 10.4% of revenue as net income. Based on the latest reported figures.
Does LG Balakrishnan & Bros Limited pay a dividend?
LG Balakrishnan & Bros Limited currently shows a dividend yield of about 1.38% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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