Lumax Auto Technologies

Friends,

I am planning to buy a small quantity of Lumax Auto Technologies. The company is into Auto Ancilliary space and is expanding to manufacture Automatic Gears. Downside is limited and upside is 50% - 75% from here.

Also the D/W policy is very good.

Any thoughts / suggestions on this stock?

Thanks,
Bhavesh.

 

Good Stock to invest.
EQAXScore is 75 out of 100,Exp. EQAXScore is 79 which is good.
"Expected EQAXScore based on quarterly results declared in current financial year."
Confidence Rating is 82 out of 100.Turnover Rating is 71 which is decent.
SHP Rating is 100. 8)

 

Thanks Vijaya.

EQAX Score that is being referred by you seems to be coming from https://www.eqax.com/screener/ - rt? If that is the case, then it should be other way round. Higher the score, poor should be the credibility of the stock. Reason why i say so - HUL has a score of 39, Britannia has a score of 26 and Sun Pharma has a score of 21!!

Thanks
Bhavesh.

 

It's the biggest manufacturer of automotive gears. Now if you look at the market then more and more cars are equipped with automatic version just because ease of driving. Keeping target is a loosing strategy. Just hold on for long term because if the most of the cars here are manual, but auto is growing very fast. And it's main disadvantages are likely to gone. One is the excessive pricing for auto which is already at reasonable level. Millage has also improved.

 

Great stock to pickup at current levels. Low debt levels & fundamentally sound with a good pipeline assured through customers like :e Bajaj Auto, Piaggio, Honda Motorcycles and Scooters, Maruti Suzuki, Toyota and Tata Motors.

Many capital market gurus have projected a price from 530 Rs to 570 Rs for this stock in a years time

 

Additionally u need to be careful on picking the right stock. The stock you are referring to is:

Lumax Auto Technologies

There are 2 more companies of similar name belonging to the same DK Jain Group:

Lumax Industries
Lumax Automotive Systems

Its easy to put ur money in the wrong company having a similar name

 

You should check what %age of sales does auto gears contribute. I reckon it's less than 10% so may not make a material impact immediately.

 

Bhavesh, They are all great companies, not great stocks. A great stock is a great combination of company quality and stock price. For example, Britannia has a terrible PE ratio of 67. So its Price Rating is a very bad 10 out of 100. That messes up all other good ratings and drags the score down. You can just type any company in the search box and get the details, not just the screener.