Multibagger Stock: Company making 2-wheeler drive chains invests around ₹60,000 to ₹1 crore, the further bullish trend
LG Balakrishnan & Brothers Company is the largest company in the country to supply drive chains for two-wheeler vehicles. In about 20 years, the price of its shares has increased 176 times from Rs 3.94 to Rs 695.80 and it is showing a bullish trend even further.
Highlights
⏩ The products of LG Balakrishnan & Brothers Company are also exported to America.
⏩ The company has given a 58 percent return to investors in just three months even in a short period.
⏩ According to market experts, the shares of this company are expected to rise even further.
New Delhi. Timing chain maker LG Balakrishnan & Bros (LG Balakrishnan & Bros) has proved to be a Multibagger for investors in the long term. According to market experts, further growth is expected in this. Its shares closed at Rs 695.80 on BSE on Friday, 9 December. This share can now reach the price of Rs 848, which is about 22 percent more than its current price.
LG Balakrishnan & Brothers Company is the largest company in the country to supply drive chains for two-wheeler vehicles. It also supplies timing chains to companies that manufacture four-wheelers. At the same time, its products are also exported to America. The total market cap of this company is Rs 2,184.28 crore.
Thousands made investments in 20 years
About 20 years ago, on March 28, 2002, the effective price of shares of LG Balakrishnan & Brothers Company was only Rs.3.94. Whereas after 20 years today it has increased 176 times to reach Rs 695.80. There is a further upward trend in this. That is if an investor had invested only Rs 57,000 in this share 20 years ago and then retained it, the value of his investment would have increased to Rs one crore by now.
Gave excellent returns even in a short period
Balakrishnan & Brothers Company has given excellent returns to investors not only in the long term but also in the short term. In the same year, on June 20, 2022, this share was at a one-year record low of Rs 508.90. Then the purchase of its shares increased and by 16 September it touched a record level of Rs 805.15. In this way, it has given a 58% return to investors in just three months. However, after this, the shares of the company have again declined and now it is available at a 14 percent discount.
The further upward trend in the company’s shares
It is the country’s largest manufacturer of chain transmissions (drive chains) and sprockets for two-wheeler vehicles. It has a 75 percent share in the domestic market and a 50 percent share in the replacement market. At the same time, the company is expanding further. The demand for two-wheeler vehicles is also increasing continuously in the domestic market. In such a situation, domestic brokerage firm Geojit BNP Paribas believes that its revenue from the transmission can grow at a CAGR (compound annual growth rate) of 24 percent in FY2024. In view of this, the brokerage firm has given a buy rating on the stock with a target price of Rs 848.
