Firstcall Research is bullish on LG Balakrishnan and Brothers (LGB) and has recommended buy rating on the stock with a target of Rs 305 in its August 19, 2011 research report.....
Firstcall Research is bullish on LG Balakrishnan and Brothers (LGB) and has recommended buy rating on the stock with a target of Rs 305 in its August 19, 2011 research report.
“LG Balakrishnan and Brothers (LGB) is India's leading Roller chain manufacturer industries in South India established in 1937. LGB is the premier manufacturer of automotive chains under the popular brand name 'ROLON'. During the quarter ended, the robust growth of Net Profit is increased by 40.42% to Rs.119.69 million. The Company’s revenue and Net profit are expected to grow at a CAGR of 22% and 41% over FY10 to FY13E. LGB has 17 chain manufacturing plants, all ISO 9001 certified by Underwriters Laboratories Inc., USA. LGB exports about 10% of its products to USA, Australia, New Zealand, South Africa, Japan, European, Far and Middle East countries.”
“L.G. Balakrishnan & Bros Ltd has posted a standalone result for the quarter ended June 30, 2011. During the quarter, the company has posted a net profit of Rs.119.69 million for the quarter ended June 30, 2011 as compared from Rs.85.24 million for the quarter ended June 30, 2010, rise of 40.42%. Net sales are surged by 33.51% to Rs.2097.74 million from Rs.1571.26 million same quarter last year. Total income grew by 33.39% to Rs 2101.70 million from Rs. 1575.62 million in the same quarter last year. The EPS of the company is stood at Rs.15.25 for the quarter ended June 2011.”
“At the current market price of Rs 270, the stock is trading at 3.73 x FY12E and 3.07 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.72.33 and Rs.87.88 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 41% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 1.94 x for FY12E and 1.66 x for FY13E. Price to Book Value of the stock is expected to be at 0.84 x and 0.66 x respectively for FY12E and FY13E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 305 for Medium to Long term investment,” says Firstcall research report.
Firstcall Research is bullish on LG Balakrishnan and Brothers (LGB) and has recommended buy rating on the stock with a target of Rs 305 in its August 19, 2011 research report.
“LG Balakrishnan and Brothers (LGB) is India's leading Roller chain manufacturer industries in South India established in 1937. LGB is the premier manufacturer of automotive chains under the popular brand name 'ROLON'. During the quarter ended, the robust growth of Net Profit is increased by 40.42% to Rs.119.69 million. The Company’s revenue and Net profit are expected to grow at a CAGR of 22% and 41% over FY10 to FY13E. LGB has 17 chain manufacturing plants, all ISO 9001 certified by Underwriters Laboratories Inc., USA. LGB exports about 10% of its products to USA, Australia, New Zealand, South Africa, Japan, European, Far and Middle East countries.”
“L.G. Balakrishnan & Bros Ltd has posted a standalone result for the quarter ended June 30, 2011. During the quarter, the company has posted a net profit of Rs.119.69 million for the quarter ended June 30, 2011 as compared from Rs.85.24 million for the quarter ended June 30, 2010, rise of 40.42%. Net sales are surged by 33.51% to Rs.2097.74 million from Rs.1571.26 million same quarter last year. Total income grew by 33.39% to Rs 2101.70 million from Rs. 1575.62 million in the same quarter last year. The EPS of the company is stood at Rs.15.25 for the quarter ended June 2011.”
“At the current market price of Rs 270, the stock is trading at 3.73 x FY12E and 3.07 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.72.33 and Rs.87.88 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 22% and 41% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 1.94 x for FY12E and 1.66 x for FY13E. Price to Book Value of the stock is expected to be at 0.84 x and 0.66 x respectively for FY12E and FY13E. We recommend ‘BUY’ in this particular scrip with a target price of Rs 305 for Medium to Long term investment,” says Firstcall research report.
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