CD Equisearch research report on Lumax Industries
The auto component industry has demonstrated a remarkable turnaround in the first half of FY22. Despite the slow offtake in OEM dispatches, the auto component industry in H1FY22, according to the Automotive Component Manufacturers Association of India (ACMA), stood at $ 26.6 billion registered year-over-year growth of 65% with a significant uptick in supply to OEMs, exports and aftermarkets as well. Exports of auto components grew by 76% to $ 9.3 billion against $ 5.2 billion in H1FY21. Europe, accounting for 31% of exports, grew by 81%, while North America and Asia, accounting for 32% and 25% respectively, also registered increase of 81% and 73% respectively. Imports also grew by 71% from $ 5.0 billion in H1FY21 to $ 8.7 billion in H1FY22 with Asia accounting for 63% of imports followed by Europe (29%) and North America (7%) reflecting growth in domestic manufacturing activities. Aftermarket dispatches, on the other hand, estimated at $ 5.3 billion witnessed a steady growth of 25%.
Outlook
Balancing odds, we recommend ‘Buy’ the stock with a revised price target of Rs. 1178 (previous target of Rs 1607) based on 15x FY23 earnings over a period of 9-12 months.
More Info
At 17:30 Lumax Industries was quoting at Rs 885.40, down Rs 7.95, or 0.89 percent.
It has touched an intraday high of Rs 912.00 and an intraday low of Rs 880.95.
It was trading with volumes of 639 shares, compared to its thirty day average of 2,856 shares, a decrease of -77.63 percent.
In the previous trading session, the share closed up 0.30 percent or Rs 2.65 at Rs 893.35.
The share touched its 52-week high Rs 1,820.00 and 52-week low Rs 855.00 on 07 June, 2021 and 29 March, 2022, respectively.
Currently, it is trading 51.32 percent below its 52-week high and 3.63 percent above its 52-week low.
Market capitalisation stands at Rs 827.65 crore.
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