Buy Lumax Auto Technologies; target of Rs 288: Sharekhan

Sharekhan's research report on Lumax Auto Technologies

On consolidation, while the content per vehicle would increase, the profitability is also expected to improve on a better product mix. Considering the superior financials, access to technology and complementary product profile - the offered valuation to IACI’s appears to be reasonable. The stock trades at P/E multiple of 11.9x and EV/EBITDA multiple of 6.1x its FY25E estimates.

Outlook

We maintain a Buy rating on Lumax Auto Technologies with an unchanged PT at Rs 288 as the IACI’s acquisition is expected to be EBITDA margin accretive.

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Lumax Auto Technologies - 21 -02 - 2023 - khan