99.10 -0.35 (-0.35%)
NSE Oct 22, 2020 15:31 PM
Volume: 10,181

HDFC Securities
Given its healthy balance sheet, consistent dividend payout (+20%), and efficient working capital cycle (15 days), we maintain our positive view on the stock. We have reduced EPS estimates by 17% over FY19-21E to factor in the impact due to the SMT business. We Maintain BUY with a revised TP of Rs 180 at 16x FY21E EPS. Despite the recent developments, we expect Lumax to benefit from 1) Sustained revenue growth from existing product lines such as lighting and sheet metals 2) incremental revenue from new products including Urea tanks and oxygen sensors (~Rs 1bn in next 2-3 years) 3) Revenue and margin expansion in the aftermarket business (the company is launching several new products across its existing product range). We expect +20% CAGR growth over the next 3-5 years.
Lumax Auto Technologies Ltd. is trading above all available SMAs
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