Lumax Industries Ltd. share price target

Lumax Industries (Lumax) is the market leader in the domestic automotive lighting industry with dominant ~55% market share in domestic passenger vehicles (PV) and ~37% market share in two wheelers.

Lumax Industries Ltd (Lumax) reported revenue of INR 431 cr in Q3FY19, registering a healthy growth of 16% yoy.

In Q2FY19, Lumax Ind.s reported revenues of Rs 518 cr (36% YoY & 4% QoQ), EBIDTA of Rs 51 cr (49% YoY & 26 QoQ) with EBIDTA margin at 9.7% (YoY expansion of 70 bps) and Total comprehensive income was reported at Rs 26.6 cr (49% YoY & 60% QoQ) on standalone basis.

We have a positive outlook on Lumax from a long term perspective and we expect the company to grow above the industry growth rate going ahead. At the CMP of `1,620, stock is available at 14x its FY20E EPS of `119. We maintain our BUY recommendation on Lumax with a target price of `2,500 (reduced from `2,550), implying a potential upside o..

Outlook & Valuation: Strong relationship with majority of Auto OEM, increasing sales of PV, 2W and CV and Improving revenue mix from Halogen lamp to LED lamp leads to better revenue and realization going ahead. Moreover LIL is also looking to localizes the manufacturing of LED lamp which is currently imported, management believe this ..

Lumax Industries Ltd (Lumax) reported revenue of INR 496 cr in Q1FY19, registering a strong growth of 46% y-o-y.

In Q1FY19, Lumax Ind.s reported revenues of Rs 496 cr (30% YoY & 11% QoQ), EBIDTA of Rs 41 cr (56% YoY & 13 QoQ) with EBIDTA margin at 8.3% (YoY expansion of 141 bps) and Total comprehensive income was reported at Rs 19.4 cr (30% YoY & 15%).

In Q4FY18, Lumax Ind.s reported revenues of Rs 560 cr (?29% YoY & ?51% QoQ), EBIDTA of Rs 48 cr (?71% YoY & ?36 QoQ) with EBIDTA margin at 8.5% (YoY expansion of 207 bps) and Total comprehensive income was reported at Rs 16.8 cr (?110% YoY).