SPA Research's report on Lumax Industries
Lumax Industries Ltd. (Lumax) reported revenues of INR 3483 mn (up 15% YoY & down 9.7% QoQ), EBIDTA of INR 245 mn (up 5.1% YoY & down 3.5% QoQ) with EBIDTA margin (Excl. Other Income) at 7% (7.7% YoY). Consolidated PAT was reportedat INR 152 mn (up by 17.8% YoY and up 113.4% QoQ). RM cost as % of sales jumped to 66.4% in 1Q FY18 (63.7% YoY) as ~ INR 65 mn increase in RM cost has been passed by vendors but the company is still negotiating with clients for price hikes.
Outlook
We incorporate FY19 numbers and recommend HOLD rating with a target price of INR 1346 based on 20x FY19E earnings.
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