Views on LG Balakrishnan & Bros 3QFY2016 Result: Angel Broking

Views of Mr. Amarjeet Maurya (Sr. Research Analyst - MidCaps, AngelBroking) on LG Balakrishnan & Bros 3QFY2016 Results:

3Q results marginally lower than estimates

"LG Balakrishnan & Bros reported slightly lower than expected standalone top-line and bottom-line growth for 3QFY2016. The top-line grew by ~7% YoY to ~INR 283cr, which is lower than our estimate of ~INR 290cr. The transmission segment revenue was up ~12% YoY; the segment accounts for ~80% of the standalone revenue of the company. The Other segment reported de-growth in sales. The company reported an operating profit of ~INR 34cr, which is up 9.4% YoY. The operating margin expanded by 22bp YoY to 12.1%, primarily on account of lower raw material cost. The reported standalone net profit grew by ~7% YoY to INR 15.4cr, which lower than our estimate of ~INR 15.7cr. Considering that the company draws a fair amount of its business from the two-wheeler segment and with the segment currently underperforming due to a rural slowdown, we retain our NEUTRAL rating on the stock."

Shares of L.G.BALAKRISHNAN & BROS.LTD. was last trading in BSE at Rs.488 as compared to the previous close of Rs. 471. The total number of shares traded during the day was 881 in over 61 trades.

The stock hit an intraday high of Rs. 488 and intraday low of 470. The net turnover during the day was Rs. 421947.

Source : Equity Bulls

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