Lumax Industries stock expected to rise 14% after Q4, annual earnings

Lumax's shares are expected to rise 14% after Q4 and annual earnings. In a year, choice broking expects the stock to rise to 2158. The auto component maker reported a 26.4% fall in consolidated profit for the fourth quarter of the fiscal year ended March 2023 compared to a net profit of Rs 28.52 crore in the corresponding quarter of the previous fiscal year.

Lumax Industries shares were flat at Rs 1900.75 compared to the previous close of Rs 1899.30 on BSE today. The small cap stock has risen 61.17% in a year and gained 12.51% since the beginning of this year. To date, there have been 104 shares of the firm changed hands, amounting to a net turnover of Rs. 1.97 lakh. The company's market cap was Rs 1776.77 crore.

The relative strength index RSI of the stock is 42.4, signaling that it is trading either in the overbought zone or in the oversold zone. Lumax Industries stock has a one-year beta of 1indicating average volatility during the period. Lumax shares are up 50, 20 and 100 days, while the 5 day, 20 day and 50 days moving averages are lower than the 100-day and 200-day moving averages.

In March 2023, the company reported a 10.69% rise in revenue to 608.10 crore compared to 549.37 crore in the March 2022 quarter. EBITDA slipped 15% to 48.92 crore in Q4 compared to 57.44 crore in March of 2022.

On a annual basis, net profit zoomed 153% to Rs 103.08 crore for the fiscal end of March 2023, against Rs 40.72 crore for the fiscal end of March 2022. Revenue rose 32.44% to Rs 2319 crore in March 2023, compared to Rs 1751 crore for the fiscal end of March 2022.

We are positive on the growth story of Lumax Industries based on: 1 its strong relationship with the majority of auto OEMs; 2 healthy demand in the PV segment; 3 increasing capacity in the PV segment will add incremental annual revenue 4 localization of electronic facility levers for margin expansion; 5 addition of new clients and models; and 6 strong order book with front loaded capex. Achieving a target price of Rs. 2158 15 x of Sep - 24 E EPS and recommend ADD. Lumax Industries is a company that creates, trades and sells automotive components, mainly automotive lighting systems for four-wheelers and two-wheelers. It offers a range of automobile lighting systems and solutions, including lighting solutions for front and rear head lamps and tail lamps sundry and auxiliary lamps, among other lighting-related products. It also makes accessories for tractor-driven, four-wheelers, two-wheelers, trucks, buses, tractors, farm equipment, and other diverse applications.