Choice Broking has an outperform call on Lumax Industries; Target price: Rs 2160

Choice Equity Broking Private has an outperform call on Lumax Industries with a target price of Rs 2160.The current market price of Lumax Industries is Rs 1714.8.

Lumax Industries, incorporated in the year 1981, is a Small Cap company (having a market cap of Rs 1611.22 Crore) operating in Auto Ancillaries sector.

Lumax Industries key Products/Revenue Segments include Automotive Lamps, Tools, Dies And Moulds, Sale of services, Scrap, Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 580.74 Crore, down -6.93 % from last quarter Total Income of Rs 624.01 Crore and up 32.41 % from last year same quarter Total Income of Rs 438.58 Crore. Company has reported net profit after tax of Rs 18.35 Crore in latest quarter.

The company’s top management includes Mr.Dhanesh Kumar Jain, Mrs.Ritika Modi, Mr.Avinash Parkash Gandhi, Mr.Rattan Kapur, Mr.Vikrampati Singhania, Mr.Dhiraj Dhar Gupta, Mr.Rajeev Kapoor, Mr.Kenjiro Nakazono, Mr.Vineet Sahni, Mr.Tadayoshi Aoki, Mr.Anmol Jain, Mr.Deepak Jain, Mr.Toru Tanabe. Company has BSR & Associates LLP as its auditors. As on 31-12-2022, the company has a total of 1 Crore shares outstanding.

Investment Rationale
The brokerage likes the growth story of Lumax based on: its strong relationship with the majority of auto OEMs; healthy demand in the PV segment; recovery in 2W sales; upcycle in the CV segment; localization of electronic facility levers for margin expansion; addition of new clients and models; and strong order book with front loaded capex.

Promoter/FII Holdings
Promoters held 75 per cent stake in the company as of 31-Dec-2022, while FIIs owned 0.65 per cent, DIIs 0.57 per cent.