look news india
Mumbai: Contrary to global markets, Indian stock markets are witnessing record highs continuously at this time. Once again, foreign portfolio investors have become big buyers of shares in India. Under the leadership of Prime Minister Narendra Modi, India is making an extraordinary economic run, but foreign funds are buying shares at the current price in regret of being out of this race of economic growth. As a result, the prices of many stocks have reached unexpected highs. There is a possibility that the market will make new records due to the continued selective attraction of funds buying, which is still seeing a growth story in Indian companies. With the monsoon progressing well, the full Union Budget to be presented on July 23, 2024 is expected to provide stimulus, relief to various sections of the people and make more and more people long-term investors and through this it is likely to make provisions for India's growth story. With this, now the quarterly results season of June 2024 is starting, the special boom in corporate results will continue. Internationally, now on Tuesday, the US. Keeping an eye on the upcoming testimony of Federal Reserve Chairman Powell, China's inflation data for June will have an impact on global markets, including UK's May GDP growth data on Thursday, US inflation data. Amid these factor-events, the Sensex can be seen ranging between 81222 and 78444 and Nifty between 24666 and 23955 in the coming week.
Arjun's focus: Lumax Industries Ltd.
BSE (517206), NSE (LUMAXIND) listed, Rs. 10 paid-up, Lumax Industries Ltd., the flagship company of the Lumax-DK Jain Group, is one of India's most experienced and leading companies in the automotive lighting industry. Having built a strong partnership spanning over four decades with Stanley Electric Co. Ltd.-Japan, a world leader in vehicle lighting and illumination products, the company has seven ultra-modern manufacturing plants in India in close proximity to the manufacturing locations of most OEMs. Lumax Industries is one of the key supplier companies for Hero MotoCorp, Honda Motorcycle & Scooter India, Honda Cars, Mahindra & Mahindra, Maruti Suzuki, MG Motors, Toyota, Tata Motors, Force Motors, Ashok Leyland, Daimler, TVS Motor, Royal Enfield, Yamaha, John Deere, TAFE, Escorts Sonalika and other OEMs. The company drives technology innovation at its 12 state-of-the-art manufacturing facilities across India in six states including Haryana, Maharashtra, Gujarat, Uttarakhand, Karnataka and Tamil Nadu. This also includes the start of commercial production of automotive electronic components at its new manufacturing plants in Bawal, Haryana and Sanand-Gujarat. Apart from this the company has two research and development centres in India and two design centres in Taiwan and Czech Republic. The company is a supplier, manufacturer for leading OEMs in the four-wheeler, two-wheeler and agricultural equipment sectors. Started as a trading company in the year 1945, Lumax is now a full-fledged company providing premium quality lighting solutions for four wheelers, two wheelers and commercial vehicles with over 5000 employees. The company also has a partnership with LL Corporation-Korea.
Lumex-DK Jain Group through its two listed companies Lumex Industries Limited (end-to-end automotive lighting solutions and HVAC panels and electronic components) and Lumex Auto Technologies Limited (integrated plastic modules, two-wheeler chassis, 2-3 wheeler lighting gear shifters), active in transmission products, emission systems, seat structures, telematics product services, oxygen sensors, on-board antennas, electric components). With over 12,000 employees and seven decades of strong existence, the group has 15 units in seven states (one overseas unit is Czech Republic), 6 engineering centres in India and one each in Taiwan and Czech Republic. Along with this, the group is a leader in automotive lighting gear shifters vehicle interior solutions and has 38 manufacturing facilities. The company spent 2.89 per cent of total revenue on R&D in FY 2021 and 2.74 per cent in FY 2022.
Product Portfolio: The company has a complete range of lighting modules in automotive lighting systems – Front & Rear, LED Lamps, Miscellaneous, Auxiliary Lamps. The company is expanding its product range in Heating Ventilation Air Conditioning Panels and Printed Circuit Boards in collaboration with Stanley Electric Co. Ltd. Also, the company is focusing on Localized LED Projectors, LED Fog Lamps, Shielded Projectors, Charging Indicator Lamps for EV use-applications.
Segment wise revenue: The company derives 65% of its total revenue from passenger vehicles, 28% from two-wheelers and 7% from commercial vehicles.
Dividend: 70 percent in 2021, 135 percent in 2022, 270 percent in 2023, 350 percent in 2024
Book Value: Rs 452 in March 2022, Rs 515 in March 2023, Rs 705 in March 2024, Rs 855 estimated in March 2025
Bonus History: 1:1 share in 1991, 3:2 share in 1994 (42.22 per cent bonus equity to total equity)
Share holding pattern: 37.5% held by Stanley Electric Co. Ltd. Japan and 37.5% by DK Jain Group India Promoted Total promoters' shareholding is 75%, 9.82% held by corporate bodies, HNIs, financial institutions and mutual funds, 15.18% of less than Rs. 2 lakh share capital is held by retail investors.
Major Customers: Domestic customers include Hero, Honda, Royal Enfield, Suzuki, Yamaha, Piaggio, TVS, Mahindra in two wheelers. Four wheelers include Mahindra Sport Utility Vehicle, Maruti Suzuki, Tata, Honda, Nishan, Renault, Fiat, Toyota, Hyundai, Kia, MG. While Commercial vehicles include Tata, Mahindra, Ashok Leyland, SML Isuzu, Force, Daimler, Volvo, Piaggio. Tractors include John Deere, TAFE, Mahindra, Sonalika International, CNH Industrial, Escorts. International customers in exports include Audi, John Deere, CNH, Nishan, Land Rover, Jaguar, Trucklite.
Consolidated Financial Results:
(1) Full year April 2022 to March 2023: Net Income Rs.2334 crore, Net Profit Margin-NPM 4.42% Net Profit Rs.103.10 crore Earnings per Share-EPS Rs.110.27
(2) Full year April 2023 to March 2024: Earning a net income of ₹ 2647.90 crore, NPM has recorded a net profit up by 4.19% to ₹ 111.2 crore and earnings per share of ₹ 118.77.
(3) Expected Full Year April 2024 to March 2025: Expected Net Income Rs. 3,000 Crore Expected Net Profit Rs. 141 Crore NPM at 4.65% Expected Earnings per Share Expected Rs. 150.
Thus (1) The author has no investment in the shares of the above company. The authors may have direct or indirect personal vested interests in the research sources. Consult a qualified investment financial advisor before making any investment decision. The author, Gujarat News or any other person shall not be responsible for any potential loss on investment. (2) Stanley Electric Japan holding 37.5 per cent stake and DK Jain Group holding 37.5 per cent promoter stake (3) Bonus equity holding 42.22 per cent in total equity (4) Full year 2024-25 expectation Expected earnings per share-EPS Rs. 150 and expected book value Rs 855 as against Rs 10, a paid-up share is currently priced at Rs 5, BSE at Rs 2917.75 (Rs 2935 on NSE) Auto ancillary P/E of 19.45 as against 350 Industry average P/E of 40 per cent cum-dividend available.