Saturday, January 8, 2011


L G BALAKRISHNAN & BROSis belongs to the Coimbatore based Elgi Group. Company is the market leader in Transmission Chains.Most of the company’s income is derived from automobile sector .Apart from its supply to OEM’s like Hero Honda,TVS Motors ,Bajaj Auto,Tata Motors ,L & T ,company have a 50% market share in replacement market with its brand’ROLON’ .LGB is also producing sprockets , tensioners, cogged belts and brake shoes. Company is now paying much attention for export and currently selling its products in 30 countries overseas.Revival of auto market in outside countries  is expected to mitigate any negative effects occurred locally .For the Six months ended Sep,LGB posted a turnover of Rs.340 Cr ,NP of Rs. 20 Cr and an EPS of  Rs.25/- .Earlier company splited its FV  to Rs.1/- and later it consolidated to Rs.10/- itself. Long term investors may consider a Buy in decline ,close to Rs.300 /- which is currently trading around Rs.315/-


  1. Value pick sir,

    May i know the reason behind FV split to 1 and then 10 ?. Just curious to know :)


  2. Hi Mahesh

    Please note that ,there was no offloading from promoter side after split as in the case of most of the other companies .So I think that the split was genuine for just creating liquidity ,but they may later realised that it is not good for the benefit of stake holders and hence reverse

  3. All your recommendations are falling...Please stop postings at this point. Otherwise investors will start cursing u and I already started...

  4. Not only my recommendations are falling ,can u post some scrips which are moving up with reasonable volume during last ten days except something with special reasons like APW president Systems or so.There is always investors in the market who are cursing when there is fall in share prices and mum when there is gain .This is the general tendency of human being and nothing special in it. One should accept the fact that, up and downs are part of the market and only this trend is offering opportunities for wise people to make money.

  5. Any comment on declared good Q3 result of company ?

  6. Hi VP,

    I am holding LG Bros in a very small quantity. Before i was referred to this site i have entered @612 level. I still look this company to worth buying upto 600 levels. I am beginner in value investing. Your current view on this company will help me in taking up further follow up on this company.




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