NSEI:LUMAXTECH

Stock Analysis Report

Lumax Auto Technologies

Executive Summary

Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and trades in automotive components for the two, three, and four wheeler industries in India.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: LUMAXTECH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.1%

LUMAXTECH

-0.4%

IN Auto Components

-0.07%

IN Market


1 Year Return

-23.0%

LUMAXTECH

-6.8%

IN Auto Components

9.5%

IN Market

Return vs Industry: LUMAXTECH underperformed the Indian Auto Components industry which returned -6.8% over the past year.

Return vs Market: LUMAXTECH underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

LUMAXTECHIndustryMarket
7 Day0.1%-0.4%-0.07%
30 Day-6.5%-6.4%-1.3%
90 Day7.3%1.6%1.9%
1 Year-20.2%-23.0%-5.9%-6.8%11.5%9.5%
3 Year31.0%23.9%-3.8%-6.0%23.6%16.7%
5 Year80.6%63.9%6.7%2.8%35.5%22.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

13.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LUMAXTECH (₹107.15) is trading above our estimate of fair value (₹65.68)

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


Price To Earnings Ratio

PE vs Industry: LUMAXTECH is good value based on its PE Ratio (13.7x) compared to the Auto Components industry average (17.5x).

PE vs Market: LUMAXTECH is poor value based on its PE Ratio (13.7x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: LUMAXTECH is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: LUMAXTECH is overvalued based on its PB Ratio (1.6x) compared to the IN Auto Components industry average (1.4x).


Next Steps

Future Growth

How is Lumax Auto Technologies forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LUMAXTECH's forecast earnings growth (4.4% per year) is below the savings rate (6.5%).

Earnings vs Market: LUMAXTECH's earnings (4.4% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: LUMAXTECH's earnings are forecast to grow, but not significantly.

Revenue vs Market: LUMAXTECH's revenue (8.5% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: LUMAXTECH's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LUMAXTECH's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Lumax Auto Technologies performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LUMAXTECH has high quality earnings.

Growing Profit Margin: LUMAXTECH's current net profit margins (4.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: LUMAXTECH's earnings have grown by 11.5% per year over the past 5 years.

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

Earnings vs Industry: LUMAXTECH had negative earnings growth (-20.4%) over the past year, making it difficult to compare to the Auto Components industry average (-20.4%).


Return on Equity

High ROE: LUMAXTECH's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Lumax Auto Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: LUMAXTECH's short term assets (₹4.5B) exceed its short term liabilities (₹3.4B).

Long Term Liabilities: LUMAXTECH's short term assets (₹4.5B) exceed its long term liabilities (₹601.2M).


Debt to Equity History and Analysis

Debt Level: LUMAXTECH's debt to equity ratio (18.4%) is considered satisfactory.

Reducing Debt: LUMAXTECH's debt to equity ratio has increased from 12.4% to 18.4% over the past 5 years.

Debt Coverage: LUMAXTECH's debt is well covered by operating cash flow (108.8%).

Interest Coverage: LUMAXTECH's interest payments on its debt are well covered by EBIT (13x coverage).


Balance Sheet

Inventory Level: LUMAXTECH has a high level of physical assets or inventory.

Debt Coverage by Assets: LUMAXTECH's debt is covered by short term assets (assets are 4.8x debt).


Next Steps

Dividend

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

3.73%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 24 2020Ex Dividend DateMar 05 2020Dividend Pay DateMar 19 202014 days from Ex DividendBuy in the next 9 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: LUMAXTECH's dividend (3.73%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: LUMAXTECH's dividend (3.73%) is in the top 25% of dividend payers in the Indian market (2.59%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.4%), LUMAXTECH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LUMAXTECH's dividends in 3 years are forecast to be well covered by earnings (19.5% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Anmol Jain (40yo)

6.5yrs

Tenure

₹35,822,000

Compensation

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 and J ...


CEO Compensation Analysis

Compensation vs Market: Anmol's total compensation ($USD498.68K) is above average for companies of similar size in the Indian market ($USD50.06K).

Compensation vs Earnings: Anmol's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dhanesh Jain
Executive Chairman0yrs₹32.62m24.25% 1.8b
Anmol Jain
MD & Executive Director6.5yrs₹35.82m14.56% 1.1b
Ashish Dubey
CFO & Head of Finance5.8yrs₹5.73m0.00032% 23.4k
Rajesh Dubbewar
Senior Vice President0yrsno datano data
Sanjay Bhagat
Executive Vice President0yrsno datano data
Anil Tyagi
Company Secretary & Compliance Officer0.8yrsno datano data
Sanjay Sachdev
Group Company Secretary0yrsno datano data

5.8yrs

Average Tenure

52yo

Average Age

Experienced Management: LUMAXTECH's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dhanesh Jain
Executive Chairman0yrs₹32.62m24.25% 1.8b
Anmol Jain
MD & Executive Director6.5yrs₹35.82m14.56% 1.1b
Avinash Gandhi
Additional Director1.3yrs₹300.00kno data
Arun Malhotra
Independent Director1.6yrs₹480.00kno data
Sanjay Mehta
Non-Executive Director2.2yrsno data0.0022% 163.6k
Deepak Jain
Non-Executive Director6.5yrs₹7.13m14.55% 1.1b
Roop Salotra
Independent Non-Executive Director6.3yrs₹540.00kno data
Milap Jain
Independent Non-Executive Director6yrs₹520.00kno data
Diviya Chanana
Additional Independent Director2.2yrs₹222.00kno data
Kanchan Gandhi
Independent Director1.6yrs₹380.00kno data

2.2yrs

Average Tenure

64yo

Average Age

Experienced Board: LUMAXTECH's board of directors are not considered experienced ( 2.2 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Lumax Auto Technologies Limited
  • Ticker: LUMAXTECH
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: ₹7.303b
  • Shares outstanding: 68.16m
  • Website: https://www.lumaxworld.in/lumaxautotech

Number of Employees


Location

  • Lumax Auto Technologies Limited
  • Harbans Bhawan-II
  • 2nd Floor
  • New Delhi
  • Delhi
  • 110046
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532796BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2007
LUMAXTECHNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2007

Biography

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 intake systems, integrated plastic modules, two wheeler chassis and lighting products, gear shifters, seat structures and mechanisms, oxygen sensors, and telematics products and services, as well as electrical and electronics components, and aftermarket products. The company serves original equipment manufacturers and the aftermarket segments. It 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 12:55
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.