Lumax Auto Technologies
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2839
Printed Date: 20/Apr/2025 at 6:24am
Topic: Lumax Auto Technologies
Posted By: Alok Bhola
Subject: Lumax Auto Technologies
Date Posted: 24/Jun/2010 at 9:11am
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Lumax Auto Technologies (LAT) is a small cap (Rs 142 cr), fast growing auto components supplier to some of the well known auto majors. The promoters of LAT are also the promoters of Lumax Industries, the leader in automotive lighting systems. LATL is primarily present in the lighting and sheet metal & fabrication spaces. Its main products include headlamps, tail-lamps, blinkers, fog lamps, engine lamps, chassis assembly, silencers, petrol tank, fork assemblies, handle bar assemblies, stand assembly and frame sub assemblies, gear shift levers and parking brakes. The company caters to two, three and four wheeler market. The company’s main customers include Bajaj Auto, Tata Motors, Maruti Suzuki, Hero Honda, Ashok Leyland, Force Motors, Eicher Group, Swaraj Mazda, Daimler, Nissan, Hyundai, Volvo, Maharashtra Scooters, TAFE and Lumax Industries. LAT also has a 50% JV with Turin-based Cornaglia group for manufacture of emission systems. The JV has orders from Tata Motors, Fiat, Bajaj Auto, Volkswagen and Skoda India. The JV has planned to set up new facility to produce air intake systems locally that are being imported at present from Cornalgia, Italy. To counter the risks of excessive client concentration, LAT continues to broaden the product portfolio, increase customer profile and geographic reach and also enters into after market segment which now constitutes approximately 50% of the total revenue. Over the past 5 years (FY05-10), the company managed to grow its revenues by 40% and net profits by 65%, despite a flat FY09. It also generated positive cash from operations during this period. The Company has negligible debt. Keeping in view the past execution track record of the company and future high growth prospects of the Indian auto sector, the current valuations of LAT (P/E of 6.2 and P/B of 1.7) appear quite attractive and have the potential of market beating returns over the next few years. |
Replies:
Posted By: Alok Bhola
Date Posted: 27/Jun/2010 at 11:50am
About 75 views and still no queries / observations / comments. It seems everyone is fully convinced about the investment rationale. So that is the reason for the UC today 
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Posted By: Hardik Parikh
Date Posted: 01/Feb/2012 at 5:34pm
| Thanks for providing this information. I find the stock still attractively priced. I am looking to evaluate the future growth scope. |
Posted By: manishwithted
Date Posted: 01/Feb/2012 at 9:11pm
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At first glance the stock looks attractive , sales are increasing, ROCE is good, stock is quoting at a PE of only 5-6.
------------- Long term thinking improves short term decision making - Brian Tracy |
Posted By: baba
Date Posted: 01/Feb/2012 at 10:33pm
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i was hunting 4 this thread .. .. ..
boring business , good mkt presence , good margins ... seems the mgmt is also decent . . ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |
Posted By: Hardik Parikh
Date Posted: 02/Feb/2012 at 6:04pm
Yes but sector is vet competitive. Performance of group company did not evoke much confidence? Where will future business come from, i.e. from same clients or will they get more clients. In the auto ancilliary space I am more comfortaable with a bigger, more established player like say Motherson Sumi or Hi-tech gears which is actively looking to diversify client base, not just where value is available. These stocks are also available at a value and their growth path seems a lot more safe. Why should I go with Lumax Auto? I could not answer that after going through their product line and annual report. 
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Posted By: manishwithted
Date Posted: 02/Feb/2012 at 8:32pm
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I havent carried out a comparative analysis bet Lumax, motherson n hitech but have noticed flwg points . - Motherson has a debt of 1262 cr. ( rev 8410 ). Lumax has debt of only 3.4 cr (rev 631 cr)., hitech gears - 54 cr (rev 427 cr) - For FY 10-11, Lumax has a much better ROCE . - The Earnings yield ( EBIT / EV) for lumax at present share price is also much better ( 24 %) then motherson ( 9 %) Hi tech gears is also attractively priced but it is also a small cap. I dont have much idea about expected future growth in revenues for these companies. Also I have done the comparison for only 1 year , a five year analysis will give better indication. ------------- Long term thinking improves short term decision making - Brian Tracy |
Posted By: baba
Date Posted: 20/May/2012 at 8:38pm
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Can someone pls give the link for hitech gears ------------- A monthly investment of Rs 500 (Rs 17 per day) for 30 years @21%CAGR can create a wealth of Rs 1.5 crores. !!! |
Posted By: pikrohit
Date Posted: 17/Jan/2013 at 1:18pm
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Is anyone following this company?? Looks quite good with ROCE of 35%, good dividend yield, low debt. It has been a 10 bagger since 2009.
Auto sector results will be quite lacklusture but maybe it could be a good time to buy this one. Plan to read the annual reports and post the findings. |