Buy Lumax Autotech; target of Rs 681: HDFC Securities
HDFC Securities is bullish on Lumax Autotech has recommended buy rating on the stock with a target price of Rs 681 in its research report dated May 17, 2017.
HDFC Securities' research report on Lumax Autotech
Lumax Autotech’s (LATL) 4QFY17 numbers were adversely impacted by demonetisation. Net revenue stood at Rs 2.31bn (-2% YoY), led by a decline in the plastic molded parts business and aftermarket sales. EBITDA at Rs 126mn (-13% YoY) with a margin of 5.4% (-72bps YoY), was impacted by negative operating leverage.
LATL has a lean balance sheet with low leverage (0.1x), a consistent dividend payout record (20%+ dividend payout) and an efficient working capital cycle (14 days). We value the stock at Rs. 681 (15xFY19E EPS). Maintain BUY.
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