Goal: ₹857
CMP: ₹556.95
Lumax Auto Applied sciences’ (LATL) consolidated income/EBITDA/PAT grew 24/11/25 per cent y-o-y to ₹906 crore/₹118 crore/₹45 crore respectively in Q3-FY25. Income development was pushed by regular 10 per cent development within the standalone enterprise of metallic frames and lighting alongwith ramp up within the JVs/subsidiaries. The superior plastics section income grew 20 per cent y-o-y to ₹513 crore, contributing 57 per cent to the consolidated income.
Mechatronics income was up 75 per cent y-o-y led by begin of manufacturing of latest orders within the joint ventures. After market section continued to be weak with tight liquidity and pricing strain impacting the realisations. The corporate is at the moment sitting on an order guide of ₹1,350 crore which consists of 90 per cent new orders which is able to drive income development forward together with the prevailing enterprise.
LATL is predicted to outperform the business development fee led by scale up of acquisitions and ramp up of JVs. The aftermarket enterprise, dormant for final couple of quarters is predicted to start out recovering from 4QFY25. This together with the consolidation of greenfuel vitality ought to drive margin enchancment from FY26. Now we have additionally included the estimates for FY27. We proceed to worth the inventory at 20x FY26E EPS of ₹45.2 and keep our TP of ₹857 in 15-18 months.
