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Buy Lumax Auto Technologies; target of Rs 268: Sharekhan

Sharekhan is bullish on Lumax Auto Technologies has recommended buy rating on the stock with a target price of Rs 268 in its research report dated August 10, 2022.

August 12, 2022 / 03:31 PM IST
 
 
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Sharekhan's research report on Lumax Auto Technologies

Lumax Auto Technologies Ltd.’s (Lumax Auto’s) Q1FY2023 results were mixed, with revenue slightly missing expectations, while net profit beat estimates by 10%. Lumax Auto is expected to benefit from new order wins from its existing clients, acquisition of new clients, and new product launches. We expect Lumax Auto’s earnings to report a 32% CAGR over FY2022-FY2024E, driven by a 20% revenue CAGR and an 80-bps improvement in EBITDA margin at 10.8% in FY2024E. The stock is trading below its historical average at a P/E multiple of 10.4x and EV/EBITDA multiple of 6.2x its FY2024E estimates.

Outlook

We maintain our Buy rating on the stock with a revised PT of Rs.268, factoring in strong business traction, margin improvement, and comfortable valuations.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Lumax Auto Technologies - 110822 - khan

Broker Research
first published: Aug 12, 2022 03:31 pm

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