Views on LG Balakrishnan & Bros 1QFY2016 Results: Angel Broking

Views of Mr. Amarjeet Maurya (Sr. Research Analyst - Mid Caps, Angel Broking) on LG Balakrishnan & Bros' 1QFY2016 Results:

"For 1QFY2016, LG Balakrishnan & Bros' standalone top-line and bottom-line growth have come in below our estimates. The top-line de-grew by ~1% yoy to ~INR 247cr, mainly due to lower growth in the Transmission segment, which reported a ~2% yoy growth (~76% standalone revenue comes from this segment). Further, the other segment reported a de-growth in sales. For the quarter, the company reported an operating profit of ~INR 24cr, down ~22% yoy. Further, the company's operating margin contracted by 261bp yoy to 9.8%, primarily on account of higher employee cost and other expenditure. The standalone net profit de-grew by ~41% yoy to ~INR 9cr due to lower sales; poor operating performance and higher tax rate (up 245bp). Currently, we have an ACCUMULATE rating on the stock and we will revise the rating after our interaction with the company's Management."

Shares of L.G.BALAKRISHNAN & BROS.LTD. was last trading in BSE at Rs.443.25 as compared to the previous close of Rs. 457. The total number of shares traded during the day was 12697 in over 480 trades.

The stock hit an intraday high of Rs. 453.5 and intraday low of 440. The net turnover during the day was Rs. 5703401.

Source : Equity Bulls

Keywords