Partial profit booking recommendation. Good to hold if you have good liquidity for extra deployment.
Since the initiation of coverage on L.G. Balakrishnan & Bros Ltd. on October 28, 2024, at a recommended entry price of ₹1,265 with a price target of ₹1,925 (implying 52% upside), the stock has delivered substantial returns and has now
successfully achieved approximately 52% of the intended price appreciation trajectory from our recommended levels, validating our original investment thesis and reinforcing the strength of our fundamental assessment. However, following the strong rally and significant wealth creation for investors, the stock’s risk-reward profile has become relatively balanced in the near term. A meaningful portion of the expected upside has already been realized, and the
current valuation now reflects a substantial part of the anticipated earnings growth and business momentum. While the long-term fundamentals of the company remain structurally intact, including its positioning in EV-compatible
transmission components and its strong OEM relationships, the scope for further sharp rerating appears more moderate from current levels in the near term. Accordingly, from a portfolio management and capital preservation perspective,
we recommend partial profit booking at current levels to lock in gains, while allowing investors to retain limited exposure to participate in the company’s long-term structural growth story. This approach enables investors to crystallize
returns generated from the successful execution of our investment thesis, while prudently managing downside risk amid evolving market conditions and valuation normalization.
Report attached below:
L G_Balakrishnan_&_Bros_Ltd _QuickNote_Book_profits_FEB_13_2026