Technology

For 1QFY2020, Lumax Industries Ltd. (LIL) registered ~17% de-growth on yoy basis
on the consolidated revenue front to `402cr as compared to `482cr. Operating
margin improved by 112bps to 9.5%. On the bottom-line front, the company has
reported de-growth of ~17% due to poor sales performance.
Outlook and Valuation: Near term outlook looks tough for the industry, however
considering the long term perspective, LIL is a good bet to play on auto growth and
increasing LED penetration, which will help Lumax to grow above the industry rate
going forward. Thus, we main our buy recommendation on the stock with target
price of `1669.

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