Shares of Lumax Auto Technologies rallied 10 percent to hit an all-time high of Rs 496.70 on the BSE in Thursday’s intra-day trade aided by a strong business outlook.
The stock of the auto ancillary company surpassed its previous high of Rs 469 on August 6, 2023.
Lumax Auto is trading higher for the third straight day, zooming 28 percent, after it reported a healthy December quarter (Q3FY24) earnings.
Q3 revenues increased by 65 percent to Rs 732 crore and earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 360 basis points to 15.8 percent over Q3FY23.
The company’s consolidated profit after tax jumped 56 percent YoY to Rs 36 crore.
The company said it continued to witness robust passenger vehicle sales and 2Ws witnessed improving demand during the strong festive season.
The positive momentum is anticipated to continue in the current quarter, driven by rising aspirational demand among consumers for vehicle ownership, it added.
Additionally, anticipating the demand, the company has expanded its operations under Lumax Cornaglia Auto Technologies by opening a new manufacturing facility at Chakan in Pune, which is a one-stop solution for complete vehicle-level emission requirements of original equipment manufacturers (OEMs).
Meanwhile, its recent acquisition, International Automotive Component (IAC) India, is performing exceptionally well, and the management is seeing an increasing share of customers’ wallets due to the realization of synergies.
Lumax Auto has been a manufacturer of a wide range of products (Integrated Plastic Modules, 2/3-wheeler Lighting, Chassis, Gear shifters, Shift Towers, Emission Systems, and Seat Frames, among others).
The Lumax group’s revenue is likely to cross Rs 3,500 crore over the medium term, driven by increasing contributions from IAC India and scaling up of subsidiaries and joint ventures (JVs), with the monetization of new orders, the contribution from existing products such as lighting, automatic gear shifter, and sheet metal, incremental revenue from new products such as oxygen sensors, and strong aftermarket demand, CRISIL Rating said
The business profile will be supported by healthy segmental diversity, a diversified product portfolio, and established customer relationships.
Healthy growth in the aftermarket business and change in product mix towards higher-margin LED lighting and integrated plastic components should help sustain the operating margin at 12 per cent-14 percent over the medium term, benefitting from the acquisition of IAC India, the rating agency said in a rationale.
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