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Lumax Auto Technologies Q2 Review - On A Strong Growth Trajectory, Tempting Valuation: Dolat Capital

Lumax Auto Technologies Q2 Review - On A Strong Growth Trajectory, Tempting Valuation: Dolat Capital

<div class="paragraphs"><p>Automobile components sit in a bin in a factory. (Photographer: Marlene Awaad/Bloomberg)</p></div>
Automobile components sit in a bin in a factory. (Photographer: Marlene Awaad/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Lumax Auto Technologies Ltd. recorded a strong performance in Q2. Ebitda margin expanded 61 basis points YoY to 11.1% benefited from operating leverage and strong aftermarket.

Revenue grew 42% YoY led by strong performance from sheet metal, plastic molded parts and aftermarket.

Management is observing promising recovery in business and expecting 20% plus revenue growth in FY22.

Company has Rs 4.4 billion order book (Rs 3.3 billion of new orders mainly for gear shifter and sheet metal).

Fueled by the improving product mix, new client acquisitions and strong original equipment manufacturer volumes, we reckon that Lumax Auto to see sharp growth in revenues (~1.4 times) and expand margins (to 10% plus on an annual basis) by FY23E.

Click on the attachment to read the full report:

Dolat Capital Lumax Auto Tech Q2FY22 Result Update.pdf

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