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Shares of Lumax Auto Technologies surged 10 per cent to hit a record high of Rs 228 on the BSE in Friday's intra-day trade. In the past 17 trading days, the stock of the auto components company has zoomed 47 per cent on expectation of improved outlook. It surpassed its previous high of Rs 224, touched on August 16, 2018. In comparison, the S&P BSE Sensex was up 0.24 per cent 53,540 points at 10:36 am.
Increasing offtake from automobile Original Equipment Manufacturers (OEMs), on the back of an improving demand scenario, including pentup demand, strong after market demand, and increased wallet share with its major customers afre likely to be the growth catalysts for the company.
Lumax Auto Technologies, through its wholly owned subsidiaries and joint ventures, has been a manufacturer of a wide range of products including integrated plastic modules, 2/3‐wheeler lighting, chassis, gear shifter, shift towers, emission systems, seat frames, oxygen sensors, and electric devices & components.
The company is engaged with OEM's (Original Equipment Manufacturer's) in passenger vehicle (PV), two-wheeler, 3 wheeler, commercial vehicle and off road vehicle segment. Its key customers include Bajaj Auto, Honda Motorcycles and Scooters, Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Toyota.
Near normal economic activity, healthy retail sales (Q1FY23 averaging at around 92 per cent of pre-Covid levels), robust demand in PV segment amid new launches in the SUV domain, cut in excise duty on fuels and plummeting key raw material prices (mainly metals) towards the fag end of the quarter post their peak in April-May 2022 were the key highlights for the automobile sector during April-June quarter (Q1FY23).
In FY21-22, Lumax Auto Technologies had recorded its highest-ever revenue & profitability. Overall industry production witnessed 1 per cent growth YoY, whereas the company's consolidated topline grew by 36 per cent in FY21-22.
As regards FY23, the company expects domestic sales and exports to rebound as the global economy (including India) is experiencing a strong recovery. "Moreover, motor vehicle manufacturers announced and/or executed new investment projects to capture the demand from first time buyers in the domestic market," Lumax Auto said in FY22 annual report.
The increasing demand for safety, emission, comfort requirements in automobiles is paving the way ahead for companies focused on supplying import-substitute products to the Indian markets.
"With high growth prospects in the Vehicle industry, the Auto Component sector is expected to rise by double digits in FY 2022-23. The Government’s recent announcements of Production Linked Incentive (PLI) schemes regarding Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components is expected to pave way for the creation of a state-of-theart automotive value chain," the company said.
Increasing offtake from automobile Original Equipment Manufacturers (OEMs), on the back of an improving demand scenario, including pentup demand, strong after market demand, and increased wallet share with its major customers afre likely to be the growth catalysts for the company.
Lumax Auto Technologies, through its wholly owned subsidiaries and joint ventures, has been a manufacturer of a wide range of products including integrated plastic modules, 2/3‐wheeler lighting, chassis, gear shifter, shift towers, emission systems, seat frames, oxygen sensors, and electric devices & components.
The company is engaged with OEM's (Original Equipment Manufacturer's) in passenger vehicle (PV), two-wheeler, 3 wheeler, commercial vehicle and off road vehicle segment. Its key customers include Bajaj Auto, Honda Motorcycles and Scooters, Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Toyota.
Near normal economic activity, healthy retail sales (Q1FY23 averaging at around 92 per cent of pre-Covid levels), robust demand in PV segment amid new launches in the SUV domain, cut in excise duty on fuels and plummeting key raw material prices (mainly metals) towards the fag end of the quarter post their peak in April-May 2022 were the key highlights for the automobile sector during April-June quarter (Q1FY23).
In FY21-22, Lumax Auto Technologies had recorded its highest-ever revenue & profitability. Overall industry production witnessed 1 per cent growth YoY, whereas the company's consolidated topline grew by 36 per cent in FY21-22.
As regards FY23, the company expects domestic sales and exports to rebound as the global economy (including India) is experiencing a strong recovery. "Moreover, motor vehicle manufacturers announced and/or executed new investment projects to capture the demand from first time buyers in the domestic market," Lumax Auto said in FY22 annual report.
The increasing demand for safety, emission, comfort requirements in automobiles is paving the way ahead for companies focused on supplying import-substitute products to the Indian markets.
"With high growth prospects in the Vehicle industry, the Auto Component sector is expected to rise by double digits in FY 2022-23. The Government’s recent announcements of Production Linked Incentive (PLI) schemes regarding Advanced Chemistry Cell (ACC) Batteries and Auto & Auto Components is expected to pave way for the creation of a state-of-theart automotive value chain," the company said.
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