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L G Balakrishnan & Bros Ltd logo

L G Balakrishnan & Bros Ltd

NSE: LGBBROSLTD BSE: 500250

1947.90

(1.02%)

Fri, 06 Mar 2026, 00:26 pm

L G Balakrishnan & Bros Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (5.8x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.9x coverage).
  • L.G. Balakrishnan & Bros's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • L.G. Balakrishnan & Bros's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

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    Cons

    • Cash flow for L.G. Balakrishnan & Bros is expected to decrease over the next 2 years.
    • L.G. Balakrishnan & Bros's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
    • L.G. Balakrishnan & Bros's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
    • L.G. Balakrishnan & Bros's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
    • L.G. Balakrishnan & Bros's earnings are expected to decrease over the next year.
    • L.G. Balakrishnan & Bros's net income is expected to decrease over the next 2 years.
    • L.G. Balakrishnan & Bros is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
    • Performance (ROE) is not expected to exceed the current IN Machinery industry average.
    • A decline in L.G. Balakrishnan & Bros's performance (ROE) is expected over the next 3 years.
    • L.G. Balakrishnan & Bros's revenue is expected to decrease over the next 2 years.
    • L.G. Balakrishnan & Bros's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
    • L.G. Balakrishnan & Bros's revenues are expected to decrease over the next 1-3 years, this is below the India market average.

    health

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    Pros

    • L.G. Balakrishnan & Bros is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • L.G. Balakrishnan & Bros is profitable, therefore cash runway is not a concern.
    • L.G. Balakrishnan & Bros is profitable, therefore cash runway is not a concern.
    • Debt is well covered by operating cash flow (221.4%, greater than 20% of total debt).
    • Debt is covered by short term assets, assets are 5.4x debt.
    • L.G. Balakrishnan & Bros's cash and other short term assets cover its long term commitments.
    • The level of debt compared to net worth has been reduced over the past 5 years (46.9% vs 12.9% today).
    • Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).
    • L.G. Balakrishnan & Bros's level of debt (12.9%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • High level of physical assets or inventory.

    management

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    Pros

    • The average tenure for the L.G. Balakrishnan & Bros board of directors is over 10 years, this suggests they are a seasoned and experienced board.
    • Balakrishnan's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The average tenure for the L.G. Balakrishnan & Bros management team is over 5 years, this suggests they are a seasoned and experienced team.
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    Cons

    • Balakrishnan's remuneration is higher than average for companies of similar size in India.
    • L.G. Balakrishnan & Bros individual insiders have only sold shares in the past 3 months.

    misc

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    Pros

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      Cons

      • L.G. Balakrishnan & Bros is covered by less than 3 analysts.
      • L.G. Balakrishnan & Bros has significant price volatility in the past 3 months.

      past

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      Pros

      • L.G. Balakrishnan & Bros's year on year earnings growth rate has been positive over the past 5 years.
      • L.G. Balakrishnan & Bros used its assets more efficiently than the IN Machinery industry average last year based on Return on Assets.
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      Cons

      • L.G. Balakrishnan & Bros's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • L.G. Balakrishnan & Bros's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • L.G. Balakrishnan & Bros has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • L.G. Balakrishnan & Bros's 1-year earnings growth is negative, it can't be compared to the IN Machinery industry average.

      value

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      Pros

      • L.G. Balakrishnan & Bros is good value based on assets compared to the IN Machinery industry average.
      • L.G. Balakrishnan & Bros is good value based on earnings compared to the IN Machinery industry average.
      • L.G. Balakrishnan & Bros is good value based on earnings compared to the India market.
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      Cons

      • L.G. Balakrishnan & Bros's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • L.G. Balakrishnan & Bros's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • L.G. Balakrishnan & Bros earnings are not expected to grow next year, we can't assess if its growth is good value.
      • 500250 underperformed the Machinery industry which returned -23.7% over the past year.
      • 500250 underperformed the Market in India which returned -14.5% over the past year.
      • BSE:500250 is up 6.1% underperforming the Machinery industry which returned 8.3% over the past month.
      • BSE:500250 is up 6.1% underperforming the market in India which returned 8% over the past month.

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