Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and trades in automotive components for the two, three, and four wheeler industries in India.
The last earnings update was 40 days ago.
Discounted Cash Flow Calculation for BSE:532796 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Lumax Auto Technologies
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
BSE:532796 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Lumax Auto Technologies
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Lumax Auto Technologies's
is considered below, and whether this is a fair price.
Price based on past earnings
Lumax Auto Technologies's earnings available for a low price, and how does
this compare to other companies in the same industry?
Lumax Auto Technologies's earnings are expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
Lumax Auto Technologies's revenue is expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Lumax Auto Technologies's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Lumax Auto Technologies
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Lumax Auto Technologies's finances.
The net worth of a company is the difference between its assets and liabilities.
Lumax Auto Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Lumax Auto Technologies's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Lumax Auto Technologies's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
High level of physical assets or inventory.
Debt is covered by short term assets, assets are 15.9x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Anmol Jain, BBA has been the Managing Director of Lumax Auto Technologies Limited since August 7, 2013. Mr. Jain has been Joint Managing Director of Lumax Industries Limited since August 13, 2014. Mr. Jain served as Vice President of Lumax GHSP Industries Ltd. Mr. Jain has been an Executive Director of Lumax Auto Technologies Limited since August 7, 2013. He has been Director of Lumax DK Auto Industries Ltd. since June 28, 2004. Mr. Jain serves as Director of Lumax Industries Limited and served as its Senior Executive Director. He served as a Non-Executive Director of Lumax Auto Technologies Ltd. from April 3, 2004 to August 7, 2013. He holds BBA from Michigan State University, U.S.A.
Anmol's compensation has increased by more than 20% in the past year.
Anmol's remuneration is higher than average for companies of similar size in India.
MD & Executive Director
CFO & Head of Finance
Head of Metallic
Group Company Secretary
Board of Directors Tenure
Average tenure and age of the
Lumax Auto Technologies
board of directors in years:
The average tenure for the Lumax Auto Technologies board of directors is less than 3 years, this suggests a new board.
Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and trades in automotive components for the two, three, and four wheeler industries in India. It offers two wheeler chassis and lighting products; integrated plastic modules; gear shifters; intake systems; seat structures and mechanisms; oxygen sensors; and telematics products and services, as well as aftermarket products. The company also provides electrical and electronics components; and aerospace and defense engineering services. It serves original equipment manufacturers and automotive companies. The company also exports its products. The company was formerly known as Dhanesh Auto Electricals Limited and changed its name to Lumax Auto Technologies Limited in 2006. Lumax Auto Technologies Limited was founded in 1981 and is based in New Delhi, India.
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