Moneycontrol
May 18, 2017 01:23 PM IST | Source: Moneycontrol.com

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.

Buy Lumax Autotech; target of Rs 681: HDFC Securities

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.


Outlook


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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