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LGB Forge Ltd

NSE: LGBFORGE BSE: 533007

5.05

(-9.50%)

Thu, 09 Apr 2026, 02:38 am

LGB Forge Analysis

dividend

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Pros

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    Cons

    • Unable to evaluate LGB Forge's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate LGB Forge's dividend against the top 25% market benchmark as the company has not reported any payouts.

    health

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    Pros

    • LGB Forge is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • LGB Forge is profitable, therefore cash runway is not a concern.
    • LGB Forge is profitable, therefore cash runway is not a concern.
    • Debt is covered by short term assets, assets are 4.6x debt.
    • LGB Forge'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 (225.3% vs 34.1% today).
    • LGB Forge's level of debt (34.1%) compared to net worth is satisfactory (less than 40%).
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    Cons

    • Operating cash flow is negative therefore debt is not well covered.
    • Interest payments on debt are not well covered by earnings (EBIT is 1.4x annual interest expense, ideally 3x coverage).
    • High level of physical assets or inventory.

    management

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    Pros

    • The average tenure for the LGB Forge board of directors is over 10 years, this suggests they are a seasoned and experienced board.
    • Vijayakumar's remuneration is lower than average for companies of similar size in India.
    • Vijayakumar's compensation has increased in line with LGB Forge recently becoming profitable.
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    Cons

    • The average tenure for the LGB Forge management team is less than 2 years, this suggests a new team.

    misc

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    Pros

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      Cons

      • LGB Forge is not covered by any analysts.
      • LGB Forge has significant price volatility in the past 3 months.

      past

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      Pros

      • LGB Forge has delivered over 20% year on year earnings growth in the past 5 years.
      • LGB Forge has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
      • LGB Forge's earnings growth has exceeded the IN Machinery industry average in the past year (28.6% vs -7.2%).
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      Cons

      • LGB Forge's 1-year earnings growth is less than its 5-year average (28.6% vs 33.3%)
      • LGB Forge used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.
      • LGB Forge has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).

      value

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      Pros

      • BSE:533007 is up 30.8% outperforming the Machinery industry which returned 8.3% over the past month.
      • BSE:533007 is up 30.8% outperforming the market in India which returned 8% over the past month.
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      Cons

      • LGB Forge is overvalued based on assets compared to the IN Machinery industry average.
      • LGB Forge is overvalued based on earnings compared to the IN Machinery industry average.
      • LGB Forge is overvalued based on earnings compared to the India market.
      • 533007 underperformed the Machinery industry which returned -23.7% over the past year.
      • 533007 underperformed the Market in India which returned -14.5% over the past year.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800