CD Equisearch's research report on Lumax Industries Lumax Industries Ltd is a leading provider of high quality automobile lighting systems and solutions, which include stellar quality lamps and other related products and accessories for four wheelers, two wheelers, trucks, buses, earth-movers, tractors and a variety of diverse applications in India as well as worldwide. It has a more than three decades old technical and financial collaboration with Stanley of Japan (which holds 37.5% stake in the company), a world leader in vehicle lighting and illumination products for automobiles.The stock currently trades at 12.7x FY16e EPS of Rs 35.60 and 10.2x FY17e EPS of Rs 44.63. Factoring in unexpected jump in margins in the first half of current fiscal, we have upped our full year earnings estimates by 56.8% (Rs 35.6 v/s Rs 22.70). Considering sturdy earnings growth-arising out of sharp meltdown in commodity prices and modest auto sector growth, we assign a ‘buy’ rating on the stock with a target of Rs 625 ( previous target: Rs 416) based on 14x FY17e earnings, over a period of 9-12 months. For all recommendations, 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.
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