Daljeet Singh Kohli - Head of Research at IndiaNivesh Securities told CNBC-TV18, "In Lumax Auto Technologies the price target is Rs 570, current price is Rs 295-300 odd level. This call is purely on the basis that they have added to new products which will be big road drivers for them. One is the automatic shift gears, when you see all these smaller vehicles now or even Celerio is coming in automatic version and for that you have automatic shift gear for automatic transmission you will need this kind of a product. So the company in the last six months have started it and the contribution is small but in next two to three years we feel that can be a very large contribution. They have already got Maruti on hold, they have already supplied to Zest."
"The company have also started exhaust systems for other vehicles like Telco and other companies. So these two businesses are growing very fast and the other one, they have just started which is a new unit in Karnataka for Honda where they are supplying plastic moulded parts which again is a very high growth driver. The valuations are as of now trading only at 5 times, so even if it just moves while say 7-8 times your target price will come," he said.
Disclosure: Analyst has personal holdings in HSIL
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