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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 highlighted LG Bala as a strong buy, citing its potential to deliver robust returns for both short-term 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.

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.

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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: ~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

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.

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Senior Sub-editor at Zee Business English

shweta.shukla@India.com

Shweta Birendra Shukla is a journalist covering the stock market and corporate affairs, with prior stints at Business ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.