LIVE NOW:Watch the Definedge Conference on Market Analysis (DECMA). Join Now

Buy Lumax Auto Technologies: target of Rs 190: Sharekhan

Sharekhan is bullish on Lumax Auto Technologies has recommended buy rating on the stock with a target price of Rs 190 in its research report dated March 16, 2021.

March 18, 2021 / 02:00 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Lumax Auto Technologies


We expect Lumax Auto to benefit from strong volume traction in its key clients’ businesses in 2W, PV, and CV segments, a diversifying client portfolio, and a widening product portfolio. We expect Lumax Auto’s earnings to report a 32% CAGR over FY2021E-FY2023E, driven by a 19% CAGR during FY2021E-FY2023E and a 90-bps improvement in EBITDA margin. The stock is trading below its historical average at a P/E multiple of 13.2x and EV/EBITDA multiple of 6.8x its FY2023 estimates.



Outlook


We maintain our Buy rating on Lumax Auto Technologies Limited (Lumax Auto) with a revised PT of Rs. 190, factoring in better multiples owing to a strong traction in its business outlook and earnings upgrade.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Mar 18, 2021 02:00 pm

stay updated

Get Daily News on your Browser
Sections