BSE:517206

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Lumax Industries Limited manufactures and supplies auto components in India and internationally.


Snowflake Analysis

Adequate balance sheet second-rate dividend payer.

Share Price & News

How has Lumax Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 517206's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.7%

517206

1.5%

IN Auto Components

1.1%

IN Market


1 Year Return

4.2%

517206

-12.7%

IN Auto Components

-6.0%

IN Market

Return vs Industry: 517206 exceeded the Indian Auto Components industry which returned -12.7% over the past year.

Return vs Market: 517206 exceeded the Indian Market which returned -6% over the past year.


Shareholder returns

517206IndustryMarket
7 Day2.7%1.5%1.1%
30 Day33.7%7.7%6.2%
90 Day17.8%29.3%18.2%
1 Year9.6%4.2%-11.2%-12.7%-4.1%-6.0%
3 Year-8.2%-13.8%-33.4%-35.3%0.2%-4.5%
5 Year354.1%306.0%-7.9%-11.8%24.5%14.9%

Price Volatility Vs. Market

How volatile is Lumax Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Lumax Industries undervalued compared to its fair value and its price relative to the market?

16.7x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 517206 (₹1284.2) is trading above our estimate of fair value (₹588.46)

Significantly Below Fair Value: 517206 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 517206 is poor value based on its PE Ratio (16.7x) compared to the IN Auto Components industry average (15.2x).

PE vs Market: 517206 is poor value based on its PE Ratio (16.7x) compared to the Indian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: 517206's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 517206 is overvalued based on its PB Ratio (2.7x) compared to the IN Auto Components industry average (1.1x).


Next Steps

Future Growth

How is Lumax Industries forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 517206's earnings are forecast to decline over the next 3 years (-6.7% per year).

Earnings vs Market: 517206's earnings are forecast to decline over the next 3 years (-6.7% per year).

High Growth Earnings: 517206's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 517206's revenue (1.2% per year) is forecast to grow slower than the Indian market (7.3% per year).

High Growth Revenue: 517206's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 517206's Return on Equity is forecast to be low in 3 years time (13.2%).


Next Steps

Past Performance

How has Lumax Industries performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 517206 has a high level of non-cash earnings.

Growing Profit Margin: 517206's current net profit margins (4.5%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: 517206's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: 517206's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 517206 had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Auto Components industry average (-29.8%).


Return on Equity

High ROE: 517206's Return on Equity (16.1%) is considered low.


Next Steps

Financial Health

How is Lumax Industries's financial position?


Financial Position Analysis

Short Term Liabilities: 517206's short term assets (₹4.3B) do not cover its short term liabilities (₹7.3B).

Long Term Liabilities: 517206's short term assets (₹4.3B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: 517206's debt to equity ratio (65.4%) is considered high.

Reducing Debt: 517206's debt to equity ratio has reduced from 88.4% to 65.4% over the past 5 years.

Debt Coverage: 517206's debt is well covered by operating cash flow (35.4%).

Interest Coverage: 517206's interest payments on its debt are well covered by EBIT (4.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Lumax Industries's current dividend yield, its reliability and sustainability?

1.83%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 517206's dividend (1.83%) is higher than the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: 517206's dividend (1.83%) is low compared to the top 25% of dividend payers in the Indian market (2.73%).


Stability and Growth of Payments

Stable Dividend: 517206's dividend payments have been volatile in the past 10 years.

Growing Dividend: 517206's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.6%), 517206's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 517206's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Vineet Sahni (55yo)

2.25yrs

Tenure

₹35,621,000

Compensation

Mr. Vineet Sahni, BE, PGDBM has been Chief Executive Officer and Senior Executive Director at Lumax Industries Limited since April 01, 2018 and served as its Chief Executive Officer of Lighting Business. M ...


CEO Compensation Analysis

Compensation vs Market: Vineet's total compensation ($USD473.91K) is above average for companies of similar size in the Indian market ($USD319.48K).

Compensation vs Earnings: Insufficient data to compare Vineet's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Jain
Chairman & MD2.25yrs₹51.28m12.54% 1.5b
Vineet Sahni
CEO & Senior Executive Director2.25yrs₹35.62m0.018% 2.2m
Anmol Jain
Joint MD & Directorno data₹18.32m12.54% 1.5b
Shruti Rustagi
Chief Financial Officer5.17yrs₹7.08m0.0023% 274.9k
Tadayoshi Aoki
Senior Executive Director2.42yrs₹1.62mno data
Mohit Sehgal
Senior Vice Presidentno datano datano data
Dinesh Kalra
Senior Vice Presidentno datano datano data
P. S. V. Raju
Senior Vice Presidentno datano datano data
Atul Jain
Senior Vice Presidentno datano datano data
Subhash Saraswat
Senior Vice Presidentno datano datano data

5.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: 517206's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deepak Jain
Chairman & MD2.25yrs₹51.28m12.54% 1.5b
Vineet Sahni
CEO & Senior Executive Director2.25yrs₹35.62m0.018% 2.2m
Anmol Jain
Joint MD & Directorno data₹18.32m12.54% 1.5b
Tadayoshi Aoki
Senior Executive Director2.42yrs₹1.62mno data
Kenjiro Nakazono
Whole-Time Director0.083yrno datano data
Dhanesh Jain
Chairman Emeritus & Chief Mentor2.25yrs₹9.74m1.53% 183.6m
Avinash Gandhi
Independent Directorno data₹420.00kno data
Munish Gupta
Independent Directorno data₹440.00kno data
Dhiraj Gupta
Independent Directorno data₹460.00kno data
Rattan Kapur
Independent Director10.17yrs₹460.00kno data

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 517206's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Lumax Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • Lumax Industries Limited
  • Harbans Bhawan – II
  • 2nd Floor
  • New Delhi
  • Delhi
  • 110046
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
517206BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1995
LUMAXINDNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1995

Biography

Lumax Industries Limited manufactures and supplies auto components in India and internationally. It primarily provides automotive lighting equipment, including head, rear, tail, and sundry and auxiliary lamps, as well as other related products and accessories. The company’s products are used in four-wheelers, two/three-wheelers, trucks, buses, tractors, farm equipment, and various other diverse applications. It serves various original equipment manufacturers. The company was founded in 1945 and is based in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 12:39
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.