Stock to Buy: The Indian stock market continued its bullish run on the second trading day of the week, with major indices trading higher. Amid the optimism, market expert Sandeep Jain has recommended LG Balakrishnan & Bros as a ‘strong buy’, citing its potential to deliver robust returns for both short- and long-term investors.
“This stock can generate substantial gains for investors looking to capitalise on the current market momentum,” Jain said.
LG Bala, an auto ancillary company, has been consistently recommended by the expert since February 2021, and is currently trading at Rs 1,396, with a dividend yield of 1.5 per cent.
Add Zee Business as a Preferred Source
LG Balakrishnan & Bros (LG Bala) share price target
Sandeep Jain has set a target price of Rs 1,590-1,650 for LG Bala, suggesting significant upside potential.
Analysts believe the stock’s strong position in the auto ancillary sector, healthy financials, and steady demand across the automotive industry make it a compelling buy for investors seeking both growth and dividend income.
ALSO READ: HSBC backs ‘cola king’ Ravikant Jaipuria’s Varun Beverages, predicts 44% rise; check target price
Fundamentals back the buy call
Jain noted that LG Bala’s fundamentals are robust:
Price-to-Earnings (P/E) multiple: 15-16
Return on Equity (ROE): 16-17 per cent
Five-year profit growth: around 30 per cent
Latest quarterly results slightly surpassed expectations, reporting Rs 66 crore profit vs Rs 63 crore estimated
Institutional investors, both domestic and foreign, hold around 19-20 per cent stake
ALSO READ: Diwali Stock Pick: Which share to buy this festive season? Market expert’s favourite with 17% upside
Company overview
LG Bala is a leader in the auto ancillary segment, catering to two-wheeler, three-wheeler, and four-wheeler manufacturers. Despite strong growth over the years, the stock continues to trade at attractive valuations, making it an appealing option for investors.
ALSO READ: Siddharth Sedani shares positional & long-term picks as Nifty50 starts October series with mild gains
