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Last Updated : Apr 05, 2018 05:44 PM IST | Source: Moneycontrol.com

Accumulate Lumax Industries; target of Rs 2602: CD Equisearch

CD Equisearch has recommended Accumulate rating on Lumax Industries with a target price of Rs 2602 in its research report dated February 23, 2018.

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CD Equisearch's research report on Lumax Industries


Revenue in Q3FY18 surged by 25.5% on account of expansion in volume (15% volume growth y-o-y) as well as value addition of new technology lighting components though sales of moulds plunged by ~72% due to postponement of certain model launches by its clients. The company realized revenue of Rs 6.5 crs ($1m) in Q3FY18 as a result of price negotiations with its customer that was pending since the first quarter of the current fiscal

Outlook

The stock currently trades at 27.2x FY18e EPS of Rs 81.23 and 21.2x FY19e EPS of Rs 104.06.On balance, we assign ‘accumulate‘rating on the stock with a revised target of Rs 2602 (previous target: Rs 1630) based on 25x FY19e earnings (forward PEG Ratio: 0.9).

For all recommendations report, click here


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First Published on Feb 23, 2018 04:11 pm
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