Hold Lumax Industries; target of Rs 416: CD Equisearch

CD Equisearch has recommended to hold Lumax Industries with a target price of Rs 416, in its research report dated March 10, 2015.

August 06, 2015 / 16:38 IST

26 Aug, 2025 12:21

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CD Equisearch’ s report on Lumax Industries

"Lumax Industries Limited (belonging to D.K.Jain group) is a full capability provider of high quality automotive lighting solutions for four wheelers and two wheeler applications, in India as-well-as worldwide.It has a more than two decade 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 sales during Q3FY15 stood at Rs 271 crore, which is a decline of 6.3% from Q3FY14 sales of Rs 289 crore. EBITDA grew by 15 .5% to Rs 15.96 crore from Rs 13.82 crore (yoy). Net profit for the quarter Rs 3.76 crore which is a growth of 112% from the same period of previous quarter (Rs 1.77 crore). The 9 month EPS for FY15 stands at Rs 15.12 versus 2.97 for the same period of FY14. Though the revenues have marginally fallen (by 5.9%), the profits have soared due to the improvement in EBITDA margins and significant drop in interest costs. EBITDA for 9MFY15 was Rs 51.20 crore versus 39.97 crore (yoy). The interest cost was Rs 9.91 crore versus 13.47 crore (yoy)."

"The stock currently trades at 18.2xFY15e EPS and 15.2xFY16e EPS. We recommend a ‘hold’ on the stock with a revised target of Rs 416 (previous target Rs 495) based on 22xFY15e EPS and 18xFY16e EPS with a time horizon of 9-12 months (refer to our previous report dated Dec 17,2014), says CD Equisearch research report.

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