Checkout Budget Highlights 2023Sharekhan's research report on Lumax Auto Technologies
On consolidation, while the content per vehicle would increase, the profitability is also expected to improve on a better product mix. Considering the superior financials, access to technology and complementary product profile - the offered valuation to IACI’s appears to be reasonable. The stock trades at P/E multiple of 11.9x and EV/EBITDA multiple of 6.1x its FY25E estimates.
Outlook
We maintain a Buy rating on Lumax Auto Technologies with an unchanged PT at Rs 288 as the IACI’s acquisition is expected to be EBITDA margin accretive.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.