HomeNewsBusinessStocksBuy Lumax Industries; target of Rs 2642: Chola Securities

Buy Lumax Industries; target of Rs 2642: Chola Securities

Chola Securities is bullish on Lumax Industries has recommended buy rating on the stock with a target price of Rs 2642 in its research report dated 04 June 2018.

September 18, 2018 / 17:11 IST
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Chola Securities's research report on Lumax Industries

Lumax Industries, part of DK Jain group, is the largest automotive lighting company in India. It manufactures Head lamps, Tail lamps, Sundry & Auxiliary lamps. Lumax has technological & financial collaboration with Stanley Electric of Japan. Stanley holds 37.5% in Lumax Industries and is its largest shareholder. Lumax provides high quality automotive lighting solutions for four wheelers, two wheelers, CVs & Tractors.

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Outlook

At CMP, the stock is trading at P/E of 23.1X/16.0x on FY19E/FY20E EPS, respectively. We arrive at a revised price target of INR 2,642 based on P/E of 19x FY20EPS and maintain a BUY rating on the stock.