🔗 LG Balakrishnan: Riding Chains Since 1937. Still Not Broken, Still Not Famous.

⚡ At a Glance

LGB makes chains, sprockets, and transmission parts for India’s two-wheeler and automotive royalty. It’s almost debt-free, posts 20%+ ROCE, has grown profit at 30% CAGR in 5 years, and still trades at a P/E of just 14.5. So why does no one talk about this Chennai-based cash-flow machine?

1. 🧲 Introduction with Hook

You’ve heard of Uno Minda, Bharat Forge, and Schaeffler India. But what if we told you one of their quieter cousins is delivering better capital efficiency at one-third the valuation?

Meet L.G. Balakrishnan — auto component OG, cashflow king, and possibly the most under-owned, under-hyped, and undervalued auto ancillary stock out there.

But… does boring mean dependable? Or just sleepy?

2. 🏭 Business Model – WTF Do They Even Do?

🚴♂️ Transmission Division (79% of revenue)

• Chains, sprockets, tensioners, brake shoes
• Primarily for two-wheelers and light vehicles
• Supplies to top OEMs like TVS, Hero, Bajaj, Honda

🔩 Metal Forming (20%)

• Precision engineering: fine blanking, machined parts, hot/cold forging
• Serves CVs and PVs

🌱 Others (1%)

• Trading + Spares

This is the invisible backbone of the auto industry. They don’t make bikes—they make bikes move.

3. 📈 Financials – Profit, Margins, ROE, Growth