The new week will see Sensex hitting between 62977 to 61577

MUMBAI: Global investors are again attracted to invest heavily in India as India continues to move forward on the path of economic growth through its foreign policy and economic policy coordination amid the global economic crisis of geopolitical tensions, inflation-inflation, rising interest rates and expansion of corporate India. is As a result, a new history of new highs has been created in Sensex last week in the Indian stock markets. Nifty is now a hand away from record levels. With foreign funds and local funds in the stocks, investors are again taken with re-valuation and re-rating in the stocks of companies with good fundamentals, a new bullish streak has started and the market has entered a new bullish zone. Now in the next week of the elections to be held in Gujarat, along with index based bullishness in the market, small, mid-cap, cash stocks are likely to witness a wide burst of bullishness, Sensex, Nifty based record bullishness can be seen going forward. Between these possibilities, Sensex will likely hit between 62977 and 61577 and Nifty spot between 18777 and 18277.

Dark Horse : LUMAX INDUSTRIES LTD.

BSE (517206), NSE (LUMAXIND) Listed, Rs.10 paid-up, STANLEY ELECTRIC-JAPAN- 37.5 per cent of Stanley Electric Japan and 37.5 per cent each of Lumax's DK Jain Group together totaling 75 per cent promoters holding, in 1991 1 :1 share and 3:2 share bonus in 1994.Thus with 42.22 per cent bonus equity in total equity through two bonus issues, again a strong bonus candidate, LUMAX INDUSTRIES LTD. is a multinational manufacturing company for lighting industries. The company provides automobile lighting systems and solutions for four-wheelers, two-wheelers, trucks, buses, earth movers, tractors and various other applications. Winner of various prestigious awards from various automobile giants including Maruti Suzuki, Mahindra & Mahindra, Toyota Motor Corporation, Tefe, ACMA-Atmanirbhar Bharat, JIPM-TPM, the company has locations in 6 states in India at Gurgaon, Daruhera and Bawal in Haryana and two in Pune Maharashtra, Sriperumbudur in Tamil Nadu. , two in Pantnagar and Haridwar in Uttarakhand, one in Sanand-Gujarat and one in Bidadi-Karnataka together with 9 state-of-the-art facilities and three R&D centers in India as well as one design center in Czech Republic and one design center in Taiwan. The company recently opened its own Advanced Lighting Technical Center in the Czech Republic through a wholly owned subsidiary. Which is the company's first technology center in Europe. The company has a 60 percent market share in the automotive lighting systems market.

The promoters of the company are Stanley Electric Japan, a leading manufacturer of electric lights, with 23 factories in eight countries, 36 consolidated subsidiaries, three associated companies, offices in 17 countries and over 16,000 employees. Stanley targets Honda, the main customer for its core business automotive lighting. Other customers include Toyota, Mazda, Suzuki, Mitsubishi, Ford and Chrysler. Lumax Industries has had a technical and financial collaboration with Stanley Electric Company Limited, a world leader in vehicle lighting and illumination solutions for over three decades. While the Indian promoter Lumax DK Jain Group is one of the leading business houses in the Indian automotive industry. In existence for seven decades, Lumex Group has 15 units in 6 states and one overseas unit in Czech Republic, 32 manufacturing facilities with three R&D centers in India and one design center in Taiwan and Czech Republic, over 10,000 employees through listed companies Lumex Industries Limited and Lumex Auto. Technologies Limited is currently a leading manufacturer and supplier of automotive components and systems with a sales turnover of Rs.3471 crore.

Major Clients:

Among the company's major customers in two-wheelers are Bajaj, Hero, Honda, Royal Enfield, Piaggio, Yamaha, Mahindra, Suzuki, TVS. While four wheelers include Mahindra Sport Utility Vehicle, Maruti Suzuki, Tata, Honda, Nishan, Renault Nishan, Fiat, General Motors, Toyota, Hyundai, Kia. Commercial vehicles include Piaggio, Tata, Ashok Leyland, Volvo, Daimler, SML Isuzu. Tractor-FES includes Tefe, John Deere, Mahindra. The company's export customers include Nishan, Land Rover, Jaguar, Audi, John Deere, CNH and Trucklite.

Share Holding Pattern:

Promoters Stanley Electric-Japan holds 37.5 percent and DK Jain Group holds 37.5 percent of the total promoter holding of 75 percent, foreign portfolio investors hold 0.47 percent, corporate bodies hold 3.46 percent, Param Capital Research Pvt. Ltd. have 2.14 per cent and individual shareholders up to Rs 2 lakh have 15.33 per cent.

Bonus History:

1:1 share in 1991, 3:2 share bonus in 1994

Book Value:

523 in March 2022, expected to be Rs.653 in March 2023

Financial Results:

(1) Full year April 2021 to March 2022 :

Net income grew by 21.60 percent to Rs.1752 crores and net profit grew by 124 percent to Rs.40.72 crores and earned EPS of Rs.43.57 per share.

(2) First Quarter April 2022 to June 2022 :

Net income grew by 63 percent to Rs.517 crore compared to a net loss of Rs.9.90 crore in the same period of the previous year and recorded a net profit of Rs.19.82 crore this time and achieved quarterly earnings per share of Rs.21.20.

(3) Second Quarter July 2022 to September 2022 :

Net income grew by 37% to Rs.624 crores and net profit grew by 115% to Rs.47.86 crores and quarterly earnings per share were achieved by Rs.35.27.

(4) First Half April 2022 to September 2022 :

Net income grew by 47% to Rs.1141 crores, net profit rose by 873% to Rs.52.79 crores and half-year earnings per share-EPS reached Rs.56.47.

(5) Expected full year April 2022 to March 2023 :

Full year earnings per share (EPS) expected to be Rs.130 with expected net income of Rs.2291 crore and expected net profit of Rs.121.48 crore.

(6) Valuation : B :

Given a P/E of only 20 for the Indo-Japan multinational as against an average P/E of 30 for the auto ancillary industry, the valuation single B for the expected EPS of Rs.130 per share for the full year 2022-2023 could touch Rs.2600.

Thus (1) The author has no investment in shares of the above company. Authors may have direct or indirect personal vested interests in research sources. The reader should invest at his own personal risk. The author, Gujarat News or any other person shall not be responsible for any possible loss on investment. (2) Expected full year April 2022 to March 2023 expected earnings per share Rs.130 and expected book value of Rs.653 The stock is currently trading at Rs.1887.50 on BSE, NSE at a P/E of 14.51.