Mehabe score: 2 G Factor: 4 Piotski Score: 6 The stock has a rating HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 6.
Description
Lumax Industries Limited is the flagship company of the DK Jain Group. It was founded as a trading company in 1945 and today it has evolved as market leader of automobile lighting in the Indian automotive industry. In 1984, company entered into a technical collaboration with Stanley Electric Co. Ltd., Japan (SECL), which currently holds around 37.5% equity stake in the company. Other 37.5% is held by Indian promoters (D.K. Jain and family). Company has 29 manufacturing facilities across 7 states in India.
Main Points
Leader in automotive lighting business:
Lumax has significant presence for over 7 decades. It is the largest supplier of automotive lighting solutions in the PV segment with ~60% market share. It has relations with almost 90% of OEMs in India.#Site:LUMAXIND
Market Cap:
Rs 1,556 cr
Price:
1667.0
Trading pe:
91.3x
Book-value:
411/share
Div yield:
1.41 %
Earning yield:
1.80%
Face-value:
10.0/share
52week high:
1820.00
52week low:
910.00
Technical Analysis
Stock trades at 1667.0, above its 50dma 1593.31. It also trades above its 200dma 1470.13. The stock remains bullish on techicals
The 52 week high is at 1820.00 and the 52week low is at 910.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has been maintaining a healthy dividend payout of 33.09%
Weakness
– The company has delivered a poor sales growth of 2.63% over past five years.
-Contingent liabilities of Rs.1327.69 Cr.
Competition
– The industry trades at a mean P/E of 32.6x. Minda Industries trades at the industry’s max P/E of 209.16x. LUMAXIND trades at a P/E of 91.3x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. LUMAXIND has a G-Factor of 4 and Piotski scoreof 6.
– Average 1 month return for industry is 5.9%. The max 1- month return was given by Minda Industries: a return of 16.23 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 504.0 cr compared to Rs 387.0 cr for period ended Mar 2020, a rise of 30.2%
Operating Profits reported at Rs 50.0 cr for period ended Mar 2021 vis-vis 34.0 for period ended Mar 2020 .
Operating Margins expanded 113.5 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 24.84 compared to Rs 14.61 for previous quarter ended Dec 2020 and Rs 24.75 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1426.0 cr for period ended Mar 2021 vis-vis sales of Rs 1602.0 cr for the period ended Mar 2020, a fall of 12.3%. The 3 year sales cagr stood at -4.7%.
Operating margins shrank to 7.0% for period ended Mar 2021 vis-vis 10.0% for period ended Mar 2020, contraction of 300.0 bps.
Net Profit reported at Rs 17.0 cr for period ended Mar 2021 vis-vis sales of Rs 72.0 cr for the period ended Mar 2020, falling 323.5%.
Company reported a poor Net Profit CAGR of -35.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was 4.0% compared to 15.0% over the last 3 Years. – The stock has given a return of 73% on a 1 Year basis vis-vis a return of -10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -11% vis-vis a compounded sales growth of -5% over the last 3 Years. – The compounded profit growth on a TTM basis is -76% vis-vis a compounded profit growth of -35% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.64% vis-vis 0.64% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 23.24% vis-vis 23.55% for Dec 2020
Conclusion
– has been maintaining a healthy dividend payout of 33.09% – The company has delivered a poor sales growth of 2.63% over past five years.
-Contingent liabilities of Rs.1327.69 Cr.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 1593.31 and is trading at 1667.0, thus bullish price action wise.
