Buy Lumax Auto Technologies: target of Rs 148: Sharekhan
Sharekhan is bullish on Lumax Auto Technologies has recommended buy rating on the stock with a target price of Rs 148 in its research report dated January 04, 2021.
January 14, 2021 / 08:51 PM IST
Sharekhan's research report on Lumax Auto Technologies
We expect Lumax Auto to benefit from the recovery in the two-wheeler and four-wheeler industry, a diversified portfolio, richer product mix and increase in content per client. We expect Lumax Auto’s earnings to grow by 59.1% in FY2022E and 26.5% in FY2023E, driven by a 20.2% CAGR during FY2021E-23E and a 140-bps improvement in EBITDA margin. Stock is attractively valued at a P/E multiple of 10.8x and EV/EBITDA multiple of 5.4x its FY2023 estimates.
We maintain our Buy rating on Lumax Auto Technologies Limited (Lumax Auto) with a revised PT of Rs. 148, factoring in better multiples owing to a strong traction in business outlook.
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