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You are here : IndiaNotes >> Research & Analysis >> Companies >> LG Balakrishnan & Bros Ltd. >> Research

LG Balakrishnan & Bros Q3FY17: Firstcall are overweight for medium to long term investment

Firstcall India Equity | 20 Mar, 2017  | Follow Author | Add to my Favourites 
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SYNOPSIS

  • L.G. Balakrishnan & Bros Ltd is engaged in the business of manufacturing chains, sprockets and metal formed parts for automotive applications.
  • L.G.Balakrishnan & Bros. Ltd has achieved a turnover of Rs. 2840.46 mn for Q3 FY17 as against Rs. 2834.30 mn in the corresponding quarter of the previous year.
  • During the quarter, EBIDTA stood at Rs. 354.18 mn as against Rs. 348.04 mn in the corresponding period of the previous year.
  • During the quarter, PBT increased by 4.42% to Rs. 203.99 mn from Rs. 195.35 mn in the corresponding period of the previous year.
  • During the 3rd quarter, net profit stood at Rs. 139.38 mn from Rs. 154.30 mn in the corresponding quarter ending of previous year.
  • EPS of the company stood at Rs. 8.88 in Q3 FY17 as against Rs. 9.83 in the corresponding quarter of the previous year.
  • For Nine month period of FY17, net profit stood at Rs. 445.90 mn as compared to Rs. 417.97 mn for he Nine month period of previous financial year.
  • In 9M FY17, Net sales stood at Rs. 8582.63 mn as compared to Rs. 8118.19 mn in 9M FY16, increased by 5.72%.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 6% and 8% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs. 585.20, the stock P/E ratio is at 15.61 x FY17E and 14.28 x FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 37.48 and Rs. 40.99 respectively.
  • Net Sales and Operating Profit of the company are expected to grow at a CAGR of 6% and 8% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 6.73 x for FY17E and 6.19 x for FY18E.
  • Price to Book Value of the stock is expected to be at 2.02 x and 1.77 x for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

 


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About Firstcall India Equity

Firstcall India Equity of Firstcall India Equity Advisors Pvt. Limited (FIEA), is a leading financial services provider in India and a SEBI Registered Category-I Merchant Banker. FIEA is a culmination of a credible Equity Research Capabilities, Long Standing Relationship with leading FIIs, DFIs, MFs, Overseas Pension Funds etc. The company’s research caters to the needs of the largest news wire and media houses of the world namely Reuters, Thomson, Capital IQ, Themarkets.com, Emerging Markets Euro money Publications-UK. The Company is among the major players in the Debt and Equity markets.


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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.




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