Buy Lumax Industries; target of Rs 1800: Dolat Capital

Dolat Capital's research report on Lumax Industries

Lumax Industries (LIL) 4Q results were below our estimates, affected by 1) slowdown in PVs sales 2) decline in the tooling business 3) fall in LED revenue (led by sharp fall in HMSI’s Activa volume). Despite the slowdown in PV sales, the company reported double digit growth in revenue and PAT in FY19, respectively led by increasing penetration of LED lighting. We expect a 13% EPS CAGR over FY19-21E, primarily driven by an 8% growth in revenue.

Outlook

We recommend a BUY rating for the stock, with a TP ` 1,800 (based on 18xFY21E EPS).