L G BALAKRISHNAN & BROS. is 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/-
