Lumax Industries Ltd. share price target

We expect the company to report Revenues/PAT at CAGR of 8%/12% over FY20-23E. We retain BUY with a target price of Rs 1743 (earlier target Rs. 1463).

Robust performance; Outlook guidance remains strong

Background: Lumax Industries, part of DK Jain group, is the largest automotive lighting company in India. It manufactures Head lamps, Tail lamps, Sundry & Auxiliary lamps. Lumax has technological & financial collaboration with Stanley Electric of Japan. Stanley holds 37.5% in L umax Industries and is its largest shareholder. Lumax provides high quality automotive lighting solutions for four wheelers, two wheelers, CVs & Tractor s. It has 27 manufacturing...

We maintain a BUY with a slightly revised TP of Rs1,610 (earlier Rs1,650) as we remain positive on Lumax Industries (LMXI) strong entry segment client mix and excellent R&D; support of Stanley. Being the largest in India and catering to mainly the PV lighting (~67%), makes LMXI more resistant to reversion to halogen lamps as PV auto lighting systems are complex and difficult to meddle with. We are convinced that greater LED penetration, higher local content and the recently announced PLI...

We retain BUY with a target price of Rs 1463 (earlier target Rs. 1557).

We remain convinced of Lumax Industries (LMXI) strong entry segment market leading client portfolio and a gradual increase in annual LED revenue share. What provides us additional confidence is that in the current uncertain climate, LMXI has a low D/E of 0.15x and is being prudent with its CAPEX planning. We stand by our existing conviction that greater LED penetration and higher local content will aid LMXI's margin profile and new products with Stanley will help diversify revenue streams. We maintain a BUY with a TP of Rs1,650. LED revenue share slips due to HMSI: LMXI's top line declined by 80.6% to...

Lumax Industries reported loss of Rs 31.6 cr in Q1FY21 on account of subdued performance of Automobile industry in wake of Covid-19 related lock down; the manufacturing facility of company was closed for 43 days in Q1FY21. Company reported sales of Rs 78 cr and loss of Rs 35 cr at EBIDTA level

Given the leadership in the Automotive lighting business, strong relationships with OEMs (MSIL, HMSI & HML) LIL is a good bet to play on recovery in PV & 2W. Although Q1FY21 was a complete washed out, recovery from July onwards is encouraging with production levels having reached 80% of normal levels. Further the company is focused on cost rationalization and preserving cash to help the company tide over the disruption caused by COVID-19. We continue to believe that the long term story for Lumax is intact,...

Buffeted by the slowdown in the Indian automobile industry, reported almost 10.5% drop in revenues in Q4FY20 to Rs. 387.29 cr in comparison to Rs. 432.65 cr in the same period a year ago volume decline accounted for a majority of this fall. OPM's consequently shrunk to its lowest levels during the year, yet higher...