The Hindu Business Line : LGB: Value at a price

INVESTORS with a penchant for high risk can consider exposures in LG Balakrishnan Brothers (LGB). The stock has run-up sharply and now trades at close to its 52-week high.

But potential for further gains exist, given the good showing in the April-June quarter and the robust trends in the automobile and industrial sectors.

But the small equity base and low trading volumes enhance the risks as they can lead to volatility.

LGB, a Coimbatore-based company, manufactures automotive and industrial chains that are marketed under the brand name `Rolon'.

Its industrial chains find applications in original equipment such as earth moving and construction machinery.

Its clients in the automotive segment include the likes of TVS Suzuki, Bajaj Auto, Hero Honda, LML and Yamaha, to name a few. The stock trades at a price-earnings multiple of about 6 times.

BL Research Bureau

Article E-Mail :: Comment :: Syndication

Stories in this Section
Prabhat India: Accept

Corsa Sail: Stylish and comfortable

MF debt products demystified

L'affaire Samir Arora — SEBI misses the bigger picture

Alliance Capital: The Pied Piper effect

Avid bidder, weak charge

FII accounts and domestic funds: Conflict of interest

Turning over a new leaf

UTI as a mutual company...
Will be in Vanguard of change

Sponsored ADRs — Make the tender book transparent