HDFC Securities is bullish on Lumax Autotech has recommended buy rating on the stock with a target price of Rs 216 in its research report dated 01 Aug 2018.
HDFC Securities' research report on Lumax Autotech
Lumax Autotech (LATL) posted strong set of numbers in 1Q. Revenue jumped 42% YoY to Rs. 3.33bn led by strong growth in lighting, Plastic molded, SMT and aftermarket business. EBITDA rose by 66% YoY at Rs 334mn (+66% YoY,) with strong margin 10% (+145bps YoY) led by richer product mix. APAT stood at Rs 181mn (+97% YoY).
Outlook
LATL has a lean balance sheet with low leverage (0.1x), a consistent dividend payout record (20%+ dividend payout) and an efficient working capital cycle (15 days). We have increased FY19/20E EPS by 8/10% factoring in strong growth across products and margin expansion. We value LATL (18x FY20E Earning) at 216 vs 198 earlier, Maintain BUY
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