Lumax Industries shares: Six factors why stock is likely to breach Rs 2,100 mark
Lumax Industries stock was trading flat at Rs 1900.75 against the previous close of Rs 1899.30 on BSE. The small cap stock has risen 61.17% in one year and gained 12.51% since the beginning of this year.
- Jun 2, 2023,
- Updated Jun 2, 2023 10:14 AM IST
Shares of Lumax Industries Ltd are likely to rise 14% post Q4 and annual earnings. Choice Broking sees the stock at Rs 2158 in a year. The auto components maker reported a 27.24% fall in consolidated profit to Rs 20.75 crore for the fourth quarter ended March 2023 against a net profit of Rs 28.52 crore in the corresponding quarter of the previous fiscal.
In the current session, Lumax Industries stock was trading flat at Rs 1900.75 against the previous close of Rs 1899.30 on BSE. The small cap stock has risen 61.17% in one year and gained 12.51% since the beginning of this year. Total 104 shares of the firm changed hands amounting to turnover of Rs 1.97 lakh. Market cap of the firm stood at Rs 1776.77 crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 42.4, signaling it's trading neither in the overbought zone nor in the oversold zone. Lumax Industries stock has a one-year beta of 1 indicating average volatility during the period. Lumax Industries shares are trading higher than the 100 day and 200 day moving averages but lower than the 5 day, 20 day and 50 day moving averages.
The firm reported a 10.69% rise in revenue to Rs 608.10 crore in the March 2023 quarter against Rs 549.37 crore in the March 2022 quarter. However, EBITDA slipped 15% to Rs 48.92 crore in Q4 against Rs 57.44 crore in the March quarter of 2022.
On an annual basis, net profit zoomed 153% to Rs 103.08 crore for the fiscal ended March 2023 against Rs 40.72 crore for the fiscal ended March 2022. Revenue climbed 32.44% to Rs 2319 crore in the March 2023 fiscal against Rs 1751 crore for the fiscal ended March 2022.
Choice Broking said, “We are positive on the growth story of Lumax Industries based on: 1) its strong relationship with the majority of auto OEMs; 2) healthy demand in the PV segment; 3) increasing capacity in PV segment (will add incremental annual revenue); 4) localization of electronic facility levers for margin expansion; 5) addition of new clients and models; and 6) strong order book with front loaded capex. We ascribe a target price of Rs.2158 (15x of Sep-24E EPS) and recommend ADD.”
Lumax Industries is engaged in the business of manufacturing, trading and supply of auto components, mainly automotive lighting systems for four-wheeler and two-wheeler vehicles. It offers a range of automobile lighting systems and solutions, comprising lighting solutions for front and rear (head lamps and tail lamps), sundry and auxiliary lamps, among other lighting-related products. It also makes accessories for four-wheelers, two and three-wheelers, trucks, buses, tractors, farm equipment, and for various other diverse applications.
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Shares of Lumax Industries Ltd are likely to rise 14% post Q4 and annual earnings. Choice Broking sees the stock at Rs 2158 in a year. The auto components maker reported a 27.24% fall in consolidated profit to Rs 20.75 crore for the fourth quarter ended March 2023 against a net profit of Rs 28.52 crore in the corresponding quarter of the previous fiscal.
In the current session, Lumax Industries stock was trading flat at Rs 1900.75 against the previous close of Rs 1899.30 on BSE. The small cap stock has risen 61.17% in one year and gained 12.51% since the beginning of this year. Total 104 shares of the firm changed hands amounting to turnover of Rs 1.97 lakh. Market cap of the firm stood at Rs 1776.77 crore.
In terms of technicals, the relative strength index (RSI) of the stock stands at 42.4, signaling it's trading neither in the overbought zone nor in the oversold zone. Lumax Industries stock has a one-year beta of 1 indicating average volatility during the period. Lumax Industries shares are trading higher than the 100 day and 200 day moving averages but lower than the 5 day, 20 day and 50 day moving averages.
The firm reported a 10.69% rise in revenue to Rs 608.10 crore in the March 2023 quarter against Rs 549.37 crore in the March 2022 quarter. However, EBITDA slipped 15% to Rs 48.92 crore in Q4 against Rs 57.44 crore in the March quarter of 2022.
On an annual basis, net profit zoomed 153% to Rs 103.08 crore for the fiscal ended March 2023 against Rs 40.72 crore for the fiscal ended March 2022. Revenue climbed 32.44% to Rs 2319 crore in the March 2023 fiscal against Rs 1751 crore for the fiscal ended March 2022.
Choice Broking said, “We are positive on the growth story of Lumax Industries based on: 1) its strong relationship with the majority of auto OEMs; 2) healthy demand in the PV segment; 3) increasing capacity in PV segment (will add incremental annual revenue); 4) localization of electronic facility levers for margin expansion; 5) addition of new clients and models; and 6) strong order book with front loaded capex. We ascribe a target price of Rs.2158 (15x of Sep-24E EPS) and recommend ADD.”
Lumax Industries is engaged in the business of manufacturing, trading and supply of auto components, mainly automotive lighting systems for four-wheeler and two-wheeler vehicles. It offers a range of automobile lighting systems and solutions, comprising lighting solutions for front and rear (head lamps and tail lamps), sundry and auxiliary lamps, among other lighting-related products. It also makes accessories for four-wheelers, two and three-wheelers, trucks, buses, tractors, farm equipment, and for various other diverse applications.
Also read: Infosys dividend history, stock movement, share price targets & more
Also read: Infosys, IndusInd Bank, Mahindra CIE, JSW Energy, Page Industries shares to turn ex-dividend today