LG Balakrishnan & Bros (LGB) is India's leading Manufactures in 2Wchain transmission (Drive chains) and sprockets with a domestic market share of 75% and around 50% in replacement market. LGB to benefit from the new capacity addition and its strong client base. We expect the revenue from Transmission to grow by 12% and factor 11% revenue CAGR over FY21E-23E Q2FY21 revenue grew by marginal 1%YoY due to lower demand. The chain transmission segment grew by 9%YoY while the metal forming and subsidiaries registered negative growth....

Festered by niche metal forming business, LGB reported nearly 12.9% drop in revenues last quarter to Rs 356.31 crs compared to Rs 408.85 crs in the same period a year ago. OPMs as a result shrunk to the lowest level in at least eight quarters - 9.6% Vs 10% in the same quarter a year...

LG Balakrishnan & Bros (LGB) is India's leading Manufactures in 2Wchain transmission (Drive chains) and sprockets with a domestic market share of 75% and around 50% in replacement market. LGB to benefit from the new capacity addition and its strong client base. We expect the revenue from Transmission to grow by 11% and factor 8% revenue CAGR over FY20E-22E owing to subdued growth from metal forging business Q3FY19 revenue de-grew by 7%YoY due to flat growth from the chain transmission segment and 33%YoY from the metal forming...

Buffeted by near dreadful state of Indian automobile industry, LG Balakrishnan's revenues (standalone) slid for the first time in five quarters (down by 6.7%), more precariously by 11% from that in the just preceding quarter. Consolidated revenue plunge barely soothe nerves (down 6%). The fall was led by its flagship transmission business for its revenues fell by 7.6% yoy (11.2% q-o-q)., while revenues of its value enhancing metal...

LG Balakrishnan & Bros (LGB) is India's leading Manufactures in 2Wchain transmission (Drive chains) and sprockets with a domestic market share of 75% and around 50% in replacement market. Q4FY19 revenue grew by 11%YoY due to 12% growth from the chain transmission segment and 9% from the metal forming.. EBITDA margin declined by 370bps due to Higher RM cost. RM/ Sales for the quarter witnessed upside of 300bps. PAT de-grew by 39%YoY added by higher depreciation cost. LGB to benefit from the new capacity addition and its strong...

Fortified by no smallish rise in revenues of metal forming business (up 37.5%), overall revenues rose by a barely depressing 21.5% last quarter. Belying historical trends, revenues of its flagship transmission business has grown in high double digits for three quarters in a row , galvanized by overall volume growth in excess of 20% in 9MFY19, thus reflecting gains in OEM market share. Buoyancy in both fine products and machining business drove recovery in metal forming business, whose revenues surge by a...

Demand outlook strong --- Valuation caps upside LG Balakrishnan & Bros (LGB) is India's leading manufacturers in 2wheeler chain transmission (Drive chains) and sprockets with a domestic market share of 75% and around 50% in the replacement market....

Spurred by sturdy off take of its value-enhancing metal forming business (+22.7%), LGB's revenue growth in Q3 rose at the highest rate (19.8%) in at least ten quarters , resurrecting its revenue share to 18.6% from just 16.3% a year ago; 9MFY18's at 18.3% Vs 17% in the same period a year ago. Buttressed by higher margins in its effervescent transmission business (11.4% Vs 7.3%) as well as metal forming business (14.1% Vs 6.1%), PBT...

After dropping to multi-quarter low in Q3 largely due to demonetization of high value Indian currency, LGB's sales growth recovered sharply in Q4 (+12.6% ) - at least a twelve quarter high . Revenues of both the transmission and metal forming businesses leapt in excess of 14%, coming at a time when transmission business fodder two-wheeler sales in the country slid 2.3% y-o-y; motorcycle sales dropped 4.2%.. Transmission business EBIT margins expanded too: 9.4% Vs 8.1% in the same quarter a year ago. Sturdy revenue booking of the metal forming...

Strong Q2FY17 Performance, Betting on Further Growth Prospects: LGB posted a strong revenue growth of 17.3% QoQ to Rs.3100 Mn, in Q2FY17compared to Q1FY17. The EBITDA margin expanded by 394 bps in Q2FY17, QoQ and EBITDA increased to 60.3% in Q2FY17 compared to Q1FY17 on a QoQ basis.The company showed a strong volume growth, by 10.1% YoY, including marginal gains in other operating income. PAT has tremendous rise with 122.4% on a QoQ basis with Rs. 211 Mn compared to Rs.95Mn in Q1FY17.

If recent trend in sales of LG Balakrishnan is anything to go by, then the domestic two wheeler industry is showing discernible signs of revival. Income from operations (standalone) jumped 10.1% to Rs 309.95 crs ($46.5m) in Q2 - the best reading in last nine quarters - not least due to hefty rise in bellwether transmission business sales (10.2%), catapulting its revenue share to 79.1%. Slackness in two wheeler industry in last few years could do little to prevent massive rise in transmission business revenue (standalone) share - 78.8% in FY16 from 67.3% in FY13....

LGB manufactures major products like Transmission chains, Forged metal parts and other critical components. LGB occupies 70% market share in supplying Drive chains to the OEMs. Major part of the revenue is generated from domestic market and 10% is from Exports to USA, Europe and Australia. LGB has 17 chain manufacturing units with advanced technical know-how; and with focused innovation, it places great emphasis on R&D;.

LG Balakrishnan & Bros (LGBBL) reported a slightly better-than-expected standalone topline and bottom-line growth for 2QFY2016. The Transmission segment, which contributed ~79% to the companys total standalone revenue, reported a growth of 11% yoy, while the Others segment reported a decline on the sales front. On the bottom-line (standalone) front, the company unperformed due to subdued sales growth and poor operating performance. Top-line grew by ~6% yoy: The standalone top-line grew by ~6% yoy to ~Rs282cr, which is higher than our estimate of ~Rs267cr. The Transmission segment revenue was up ~11% yoy; the segment accounted for ~79% of the standalone revenue of the company. The Others segment reported a decline in sales. Poor operating performance and lower other income mar profitability: The company reported an operating profit of ~Rs36cr, which is down 0.2% yoy. The operating margin contracted by by 74bp yoy to 12.8%, primarily on account of higher employee costs and other expenditure. The reported standalone net profit declined by ~19% yoy to ~Rs17cr, but is higher than our estimate of ~Rs16cr. However, on adjusting for the one-time exceptional gain incurred in 2QFY2015, the PAT during 2QFY2016 actually grew by 5% yoy. Outlook and valuation: LGBBL is a market...