Shares of LG Balakrishnan and Bros touch a significant milestone of Rs 1000

Today, the shares of LG Balakrishnan & Bros Ltd (LGB) touched a significant milestone of Rs 1000 in the Indian Market and showed strength above this level. The stock has hit a fresh 52-week high of Rs 1038.35 today. It is currently trading at around Rs 1020 on BSE.

LGB is a prominent auto ancillaries company specializing in the manufacturing and distribution of automotive chains, industrial chains, and engineering products, has reached a significant milestone in its stock performance and reflects its strong growth trajectory and investor confidence. 

Today the stock opened at Rs 948.50, 1% up from its previous day’s closing price of Rs 939.45 during the intraday session it hit Rs 1000 at around 10:45 am with a significant volume burst and is currently Rs 1020 in BSE and showing good strength. 

The current market cap of the company is Rs 3200 Crore. Its 52-week highs and lows are Rs 1038.35 and Rs 555.80. The stock has generated a return of over 80% in the last one year and has given a multibagger return of over 340% in the last three years whereas Sensex is trading at all-time high levels but still, it has given a return of 78% which indicates LGB’s stock has outperformed the Sensex during the same period. 

As per the latest quarter update, the Promoter holding in the company is at 34.21% while FIIs and DIIs hold 9.17% and 11.73% respectively. The remaining portion of total shareholding is owned by Public investors which is 44.87%. 

In FY23, LGB experienced modest growth in revenue, surging by 4.80% from Rs 2102 Crore to Rs 2203 Crore. The company achieved an operating profit of Rs 384 Crore, reflecting a margin of 17%. The net profit for the year amounted to Rs 252 Crore. 

The Return on Capital Employed (ROCE) stands at 24.3%, while the Return on Equity (ROE) is reported as 19%. The debt on their balance sheet stands at Rs 93 Crore with a debt to equity of 0.07 times which can be considered as low. Cash and Cash Equivalent of the company is Rs 348 Crore. Their earning per share is growing constantly and is Rs 80.25 in FY23.

LG Balakrishnan & Bros Ltd (LGB) specializes in manufacturing and distributing automotive chains, industrial chains, and engineering products. The company was founded in 1937. It has a network of manufacturing facilities in India, including plants in Coimbatore, Pant Nagar, and Aurangabad. These facilities are equipped with advanced machinery and technologies to ensure high-quality products. 

Its product range includes motorcycle chains, industrial chains, and automotive components. In addition to chains, LGB also manufactures and supplies other engineering products such as sprockets and gears, tensioners, Automotive belts, and Fine Blanking. The company has a well-established research and development division that focuses on continuous product improvement and innovation. 

The stock of the company is trading at all-time highs levels and has great potential to give multibagger returns in the future. Investors must keep this stock on their radar.