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Lumax Industries Ltd Stock Analysis

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Lumax Industries Ltd. was incorporated in 1945, promoted by S C Jain has grown from success to success since its foundation. The company went public in the year 1984 , and thus in the same year embarked on its highly successful technical collaboration with Stanley, Japan .Ten years of highly...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Lumax Industries Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 12.5%7.87%7.95%6.14%7.97%13.97%15.54%18.27%21.1%14.91%
Value Creation Index -0.07-0.42-0.41-0.55-0.410.030.150.350.560.10
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8669851,0701,1171,1431,2551,2711,6491,8511,602
Y-o-Y Gr. Rt.-13.7%8.6%4.3%2.3%9.9%1.3%29.8%12.3%-13.5%
Adjusted EPS (Rs.) 26.5215.9215.39.1817.8140.1147.3866.0590.3980.05
Y-o-Y Gr. Rt.--40%-3.9%-40%94%125.2%18.1%39.4%36.9%-11.4%
Book Value per Share (Rs.) 156.92163.66172.92177.07184.61210.18264.74313.3398.22411.27
Adjusted Net Profit 24.814.914.38.616.737.544.361.784.574.8
Net Op. Cash Flow (Rs. Cr.) 87.167.184.56159.181.399.6140104103
Debt to Cash Flow from Ops 1.142.72.082.592.71.570.930.741.343.09
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Lumax Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.1%7%8%-13.5%
Adjusted EPS 13.1%35.1%19.1%-11.4%
Book Value per Share 11.317.415.83.3
Share Price 15.1% 23% -12.7% 10.4%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 16.669.448.665.019.4219.519.6122.8525.4119.78
Operating Profit Margin (%) 7.274.955.84.775.27.087.948.28.5110.26
Net Profit Margin (%) 2.861.511.340.771.462.993.483.744.564.67
Debt to Equity 0.681.181.090.950.920.650.370.360.380.83
Working Capital Days 86928584888896110119130
Cash Conversion Cycle -20-28-35-35-24-19-24-21-11-2
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 75.00%
Institutions 1.64%
Non-Institutions 23.36%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Lumax Industries Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Lumax Industries Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Lumax Industries Ltd's performance infers:

Lumax Industries Ltd earnings have grown by 35.1%, whereas share price has appreciated 23% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Lumax Industries Ltd share prices over the last 10 years. Here is what we found out:

Lumax Industries Ltd share price has appreciated 16.8% annually over the past ten years.

Lumax Industries Ltd. was incorporated in 1945, promoted by S C Jain has grown from success to success since its foundation. The company went public in the year 1984 , and thus in the same year embarked on its highly successful technical collaboration with Stanley, Japan .Ten years of highly rewarding partnership resulted in Stanley picking up financial stake in Lumax in the year 1994 .

Lumax signifies ‘LUMINOSITY MAXIMA’ for today’s demanding automobile users. It has

Lumax Industries Ltd. was incorporated in 1945, promoted by S C Jain has grown from success to success since its foundation. The company went public in the year 1984 , and thus in the same year embarked on its highly successful technical collaboration with Stanley, Japan .Ten years of highly rewarding partnership resulted in Stanley picking up financial stake in Lumax in the year 1994 .

Lumax signifies ‘LUMINOSITY MAXIMA’ for today’s demanding automobile users. It has taken automotive lighting to an entirely new level. Today Lumax accounts for over 60% market share in the Indian automobile lighting business, catalyzed by its over two decades strong technical and financial collaboration with Stanley Electric Company Ltd, Japan, a world leader in vehicle lighting and illumination products for automobiles.

As the most experienced automotive lighting solutions company in South Asia, Lumax , enjoys a history of more than half a century of innovation, technology, manufacturing and market leadership. Today, Lumax Industries Limited is a full-capability provider of high quality automotive lighting solutions for four wheelers and two wheeler applications, serving automobile manufacturing in India as-well-as worldwide.

Lumax strives for continual improvement of manufacturing processes with emphasis on consistent quality and cost effectiveness. Lumax has come a long way since its inception as a trading company in the year 1945, under the aegis of its founder S.C. Jain .

Lumax became an ISO 9002 certified company in 1995 , attained its QS 9000 certification in the year 1998 and achieved the ISO/TS 16949 : 2002 and ISO 14001 in 2003. In the same year Lumax Industries Ltd de-merged from its Mirror and Filter Division , there-by focusing on its core competency of producing stellar automotive lighting products.

Lumax has seven ultra modern manufacturing plants in India. Of these, two are located in cities of Gurgaon , Dharuhera in the state of Haryana, near New Delhi and three plants in Pune, near Mumbai in Maharashtra and one plant near Chennai . These facilities have been laid out to match world's best plant engineering standards, their  plants are busy producing automotive lighting products in large quantities to customer's exacting standards.

Lumax has a futuristic vision with an experienced and customer focused management team. Lumax facilities are manned by over a 2000 highly skilled and specialized personnel composed of associates, executives and managers. Lumax is listed on major stock exchanges in India and depicts a shareholding holding of 26% by Indian promoters, and 46% by public and corporate bodies . 

Product range of the company includes:

Lumax Industries offers a wide array of complete automobile lighting systems and solutions, which includes; stellar quality Head Lamps and Tail Lamps, Sundry and Auxiliary Lamps and other related products and accessories for four wheeler, two wheeler, trucks, buses, earth-movers, tractors and a variety of diverse applications.

Clients

The company is having a highly diversified customer base its clientele includes global as well as domestic automotive majors like, John Deere, Nissan, TruckLite, Vignal, Maruti Suzuki, Hero Honda, Tata, Bajaj, Ford, Volvo Fiat and many more.

Technical Alliance:

  • Lumax, Japan
  • Valeo lighting Systems, France
  • Truck Lite, Europe

Milestones:

  • 1945    S.C. Jain , Chairman, establishes a trading concern.  
  • 1956-66  Manufacturing units set up for automotive lighting equipment and other components.
  • 1975  Manufacturing unit set up for automotive filters .
  • 1977-79 Manufacturing units became functional at Faridabad-Haryana and Pune-Maharashtra.
  • 1984 Private ltd. xompany to public limited company . Technical assistance agreement with a Japan based company for lighting equipment. 
  • 1985-87  Dedicated manufacturing unit for Maruti-Suzuki at Gurgaon - Haryana.  
  • 1990  Manufacturing unit for auto bulbs with assistance a Japanese company. 
  • 1994  Financial participation of collaborator with a Japanese firm . Manufacturing unit at Aurangabad-Maharashtra .  
  • 1995   ISO 9002 Certification to Gurgaon unit by TUV Germany . 
  • 1998  QS-9000 Certification to Gurgaon unit by DNV Netherlands . Production begins at Lumax Dharuhera .
  • 1999  QS-9000 Certification to Dharuhera unit by DNV Netherlands .  
  • 2003  ISO/TS 16949 : 2002 Certification for GURGAON and Dharuhera plants by DNV, USA . 
  • 2004 ISO 14001 Certification for Gurgaon, Dharuhera and Chennai plants by DNV . De-merger - Core Lighting Technology. 
  • 2005  Manufacturing unit became functional at Chakan (Near Pune)
  • 2006  Plant set up in Bajaj Auto Vendor Park- at Pantnagar - Uttranchal
  •  2007 Setting up of state of art new plants at Pantnagar-Uttranchal, Singur-West Bengal and Haridwar-Uttranchal.Extension of Dharuhera and Chakan II Plant.
  • 2010 The Company has commenced commercial production Greenfield Plant in Haridwar, (Uttarakhand) for manufacturing of Lighting Components.
    Setup a new Plant in Haridwar, Uttarakhand for Hero Honda.
  • 2011 Setup new Plants in Bawal, Sanand and Bidadi.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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