Be Ready For Huge Rs 20 Dividend By Small-Cap Stock, Q4 Result Robust; Time To Buy Auto Stock?

With the largest market share in both OEM and replacement markets, LG Balakrishnan & Bros Ltd is the top OEM provider of two-wheeler drive chains. Under the well-known brand name "ROLON," it is a leading manufacturer of automotive chains, sprockets, and chain tensioners. Additionally, LGB manufactures top-notch precision machined gears and parts as well as fine blanked products. Following the announcement of strong Q4 results and a sizeable dividend of Rs 20 for FY25, LG Balakrishnan & Bros Ltd's shares closed the day 1.80% higher on the BSE at Rs 1214.40 per share, with a market capitalization of Rs 3,873.01 Cr.

LG Balakrishnan & Bros Dividend

"Pursuant to Regulation 30 of the Listing Regulations, the board of directors have recommended a dividend of Rs.20/- per Share of Rs.10/- each ( 200% on the face value) for the financial year ended March 31, 2025, subject to the approval of shareholders in the upcoming Annual General Meeting," said the company in a stock exchange filing.

LG Balakrishnan & Bros Annual General Meeting And Book Closure

"The Board has approved the convening of 69th Annual General Meeting ("AG M") of the Company on Thursday, August 21, 2025, through Video Conferencing/ Other Audio Visual Means in accordance with the applicable circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. The Register of Members and Share Transfer Books of the Company will remain closed from Friday August 15, 2025, to Thursday August 21, 2025 (both days inclusive) for the purpose of the 69th Annual General Meeting of the Company," informed LG Balakrishnan to stock exchanges.

LG Balakrishnan Q4 Results

In the quarter ending in March 2025, L G Balakrishnan & Bros's net profit increased 23.84% to Rs 84.04 crore on a consolidated basis, compared to Rs 67.86 crore in the quarter ending in March 2024. Compared to the year-ago quarter, which ended in March 2024, when sales were Rs 606.96 crore, sales in the quarter ending in March 2025 increased 10.25% to Rs 669.17 crore. The net profit for the entire year jumped by 11.34% to Rs 302.11 crore in March 2025 compared to Rs 271.34 crore in March 2024. In the year ending in March 2025, sales increased 9.90% to Rs 2578.29 crore, compared to Rs 2346.05 crore in FY24.

LG Balakrishnan Share Price Target

"This stock is looking strong and slowly moving upward. It has been going higher step by step and has good support from buyers. If the price stays above ₹1180, it can move up to ₹1250 or even ₹1300. If the price falls a little, ₹1180-₹1190 is a good level to buy again. You can keep a stop loss at ₹1150. The company is doing well in the auto parts business, which helps support the stock," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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