LG Balakrishnan & Bros - A Dominant Player With Strong Leadership Position: HDFC Securities

"BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Retail Research .The Indian automobile industry has witnessed muted growth in FY22 coming on the back of a high base and production disruption. FY23 sales growth is expected to be better going by most original equipment manufacturer management commentary. The Government is making huge investments in building road infrastructure, which is likely to drive higher demand for automobiles. The pandemic has resulted in increased demand for personal mobility vehicles benefitting two-wheeler, which is the first personal automobile for most Indians. However, transition to electric vehicles could have a significant impact as it would eliminate the requirement of drive chain. LG Balakrishnan and Brothers Ltd. mainly caters to two-wheeler industry and operates in two segments-transmission products which includes chains, sprockets, tensioners, belts and brake shoe which contributes ~80% of overall revenue – mainly catering to two-wheeler,metal forming products consisting of fine blanking for precision sheet metal parts, machined components and wire drawing products contributing ~20% of overall revenue. LG Balakrishnan and Brothers is a dominant player with strong leadership position in automotive chains in the Indian two-wheeler industry..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

LG Balakrishnan & Bros - A Dominant Player With Strong Leadership Position: HDFC Securities