Lumax Auto Technologies Ltd (LUMAXTECH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Minda Corp

SJS Enterprises

Lumax Auto Tech.

Banco Products

Varroc Engineer

Shriram Pistons

Ramkrishna Forg.

ASK Automotive

Gabriel India

Amara Raja Ener.

Sedemac Mechatro

Why is Lumax Auto Technologies Ltd ?

High Management Efficiency with a high ROCE of 20.01%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.87 times

Healthy long term growth as Net Sales has grown by an annual rate of 34.46% and Operating profit at 49.65%

The company has declared Positive results for the last 7 consecutive quarters

NET SALES(Q) At Rs 1,416.93 cr has Grown at 23.6% (vs previous 4Q average)
PBDIT(Q) Highest at Rs 203.21 cr.
OPERATING PROFIT TO NET SALES(Q) Highest at 14.34%

With ROCE of 22.9, it has a Expensive valuation with a 5.8 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 60.07%, its profits have risen by 65.1% ; the PEG ratio of the company is 0.6

High Institutional Holdings at 25.18%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.66% over the previous quarter.

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lumax Auto Tech. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Lumax Auto Tech. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Lumax Auto Tech.

60.07%

1.11

54.31%

Sensex

-7.55%

-0.58

13.06%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

34.46%

EBIT Growth (5y)

49.65%

EBIT to Interest (avg)

6.70

Debt to EBITDA (avg)

1.90

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

1.90

Tax Ratio

16.94%

Dividend Payout Ratio

28.80%

Pledged Shares

Institutional Holding

25.18%

ROCE (avg)

20.53%

ROE (avg)

17.58%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.23

EV to EBIT

25.15

EV to EBITDA

18.31

EV to Capital Employed

5.75

EV to Sales

2.48

PEG Ratio

0.59

Dividend Yield

0.34%

ROCE (Latest)

22.88%

ROE (Latest)

24.25%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

20What is working for the Company

NET SALES(Q)

At Rs 1,416.93 cr has Grown at 23.6% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 203.21 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 14.34%

PBT LESS OI(Q)

At Rs 120.87 cr has Grown at 37.6% (vs previous 4Q average

PAT(Q)

At Rs 87.77 cr has Grown at 33.0% (vs previous 4Q average

EPS(Q)

Highest at Rs 12.93

-5What is not working for the Company

INTEREST(Q)

Highest at Rs 30.57 cr

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Here's what is working for Lumax Auto Tech.

Net Sales - Quarterly

Highest at Rs 1,416.93 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 1,416.93 cr has Grown at 23.6% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 1,146.57 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 203.21 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 14.34%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 120.87 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 120.87 cr has Grown at 37.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 87.86 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 87.77 cr has Grown at 33.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 66.02 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 12.93

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Lumax Auto Tech.

Interest - Quarterly

Highest at Rs 30.57 cr

in the last five quarters and Increased by 11.94 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)