Mehabe score: 3 G Factor: 5 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 5 and Piotski score of 6.
Description
Lumax Auto Technologies Ltd was incorporated in 1981 and is a part of the D.K. Jain Group of companies. It is engaged in the business of manufacturing and supplying of Automotive Lamps, Plastic Moulded Parts, and Frame Chassis to two, three, and four-wheeler segments #
It has Partnerships with 7 Global players like Yokowo(Japan), JOPP(Germany), and few others.
Main Points
Market Leadership
It is the market leader in Gear Shifters with around 70% market share in FY19 # #
It’s key customers are Bajaj Auto, Lumax Industries, Maruti Suzuki India, etc. #
Its top 3 customer contribute 65% of RevenueSite:LUMAXTECH
Market Cap:
Rs 1,112 cr
Price:
163.0
Trading pe:
23.4x
Book-value:
77.9/share
Div yield:
1.84 %
Earning yield:
7.68%
Face-value:
2.00/share
52week high:
174.00
52week low:
70.00
Technical Analysis
Stock trades at 163.0, above its 50dma 146.84. It also trades above its 200dma 129.87. The stock remains bullish on techicals
The 52 week high is at 174.00 and the 52week low is at 70.00
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 36.54%
Weakness
– The company has delivered a poor sales growth of 4.18% over past five years.
– has a low return on equity of 12.26% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.9x. WABCO India trades at the industry’s max P/E of 125.62x. LUMAXTECH trades at a P/E of 23.4x
– Industry’s mean G-Factor is 4.2 while the mean Piotski score is 7.0. LUMAXTECH has a G-Factor of 5 and Piotski scoreof 6.
– Average 1 month return for industry is 11.0%. The max 1- month return was given by Lumax Auto Tech.: a return of 24.2 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 388.0 cr compared to Rs 273.0 cr for period ended Mar 2020, a rise of 42.1%
Operating Profits reported at Rs 43.0 cr for period ended Mar 2021 vis-vis 14.0 for period ended Mar 2020 .
Operating Margins expanded 595.4 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 3.08 compared to Rs 3.39 for previous quarter ended Dec 2020 and Rs 0.89 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1108.0 cr for period ended Mar 2021 vis-vis sales of Rs 1141.0 cr for the period ended Mar 2020, a fall of 3.0%. The 3 year sales cagr stood at 3.0%.
Operating margins expanded to 9.0% for period ended Mar 2021 vis-vis 8.0% for period ended Mar 2020, expansion of 100.0 bps.
Net Profit reported at Rs 47.0 cr for period ended Mar 2021 vis-vis sales of Rs 58.0 cr for the period ended Mar 2020, falling 23.4%.
Company reported a poor Net Profit CAGR of -1.4% 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 had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 10.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 124% on a 1 Year basis vis-vis a return of 2% over the last 3 Years. – The compounded sales growth on a TTM bassis is -3% vis-vis a compounded sales growth of 3% over the last 3 Years. – The compounded profit growth on a TTM basis is -17% vis-vis a compounded profit growth of -2% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 19.53% vis-vis 18.58% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 18.59% vis-vis 19.54% for Dec 2020
Conclusion
– has reduced debt.
– is almost debt free.
– has been maintaining a healthy dividend payout of 36.54% – The company has delivered a poor sales growth of 4.18% over past five years.
– has a low return on equity of 12.26% for last 3 years.
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 146.84 and is trading at 163.0, thus bullish price action wise.
