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Lumax Auto Technologies
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Lumax Auto Technologies Ltd is a part of the D K Jain Group of companies. The company is engaged in the manufacture of automotive parts like sheet metal parts, fabricated assemblies, tubular parts for two wheeler and three wheeler industries. They operate in two segments, namely Automotive Parts and Trading of Motor Adjusters. They have six manufacturing plants, in which, three are located in Pune, two plants in Aurangabad, and a research and development centre in Pune.
The company's product line includes two wheeler chassis, exhaust systems and mufflers, fork and handle bar assemblies, petrol tanks, adjustor motors, auto lightings among numerous others. The company has one wholly owned subsidiary company, namely Lumax DK Auto Industries Ltd.
Lumax Auto Technologies Ltd was incorporated on October 30, 1981 as a private limited company with the Lumax Auto-Electricals Pvt Ltd. The company was established to manufacture and supply automotive components at Bhosari. In the year 1988, the company started their second unit at Waluj, Aurangabad for supplying auto parts to Bajaj Auto Ltd.
In November 2, 1988, the company changed their name from Lumax Auto-Electricals Pvt Ltd to Dhanesh Auto Electricals Pvt Ltd. In the year 1993, they established R&D centre at Chinchwad, Pune to cater to the development requirement for the new business. In the year 1995, the company started their third unit at Chakan, Pune for manufacturing of exhaust systems and fuel tanks for two wheelers. In the year 1997, they started their fourth unit at Waluj, Aurangabad for the production of motorcycle chassis for Bajaj Auto Limited.
In the year 2000, Bajaj Auto Ltd selected the company as a cluster member for TPM Activities. In the year 2002, the company started lighting Division at Chakan. In March 30, 2002, the company was converted into public limited company and the name was changed to Dhanesh Auto Electricals Ltd. In the year 2004, the company received ISO Certificate for Chakan Unit. In the year 2005, they received ISO Certificate for Bhosari Unit.
In January 2006, Lumax DK Auto Industries Ltd became a wholly owned subsidiary of the company. In August 2, 2006, the company changed their name from Dhanesh Auto Electricals Ltd to Lumax Auto Technologies Ltd.
During the year 2007-08, the company entered into joint venture agreement with Officine Metallurgiche G Cornaglia, SpA, Italy through their subsidiary Cornaglia Metallurgical Products India Pvt Ltd to manufacture and supply Air Intake Systems and Exhaust Systems to Automobile manufacturers.
During the year 2008-09, the company started commercial production of leveling motors unit at Chakan, Pune. They added three new customers, including two for supply of Car Seating Frame and one for export business which will add to the business in future. The joint venture company acquired prestigious orders for Air Intake System from VOLKS WAGEN & SKODA INDIA, making it the single source catering to all the vehicle platforms of these customers.
During the year 2009-10, the company started a new trading unit at Manesar, Haryana, for Trading of Adjustor Levellor Motors business. They diversified into Non-Auto Segment business LED based Lightings and other Infrastructural Lightings. Also, they started the commercial production of 'Seat Frame Business'. In March 2010, the company set up a new plant at Kale-amb in Himachal Pradesh for production of various Auto bulbs and related applications.
Lumax Auto Technologies share price reflects investor sentiment toward the company and is impacted by various factors such as financial performance, market trends, and economic conditions. Share price is an indicator which shows the current value of the company's shares at which buyers or sellers can transact.
Market capitalization of Lumax Auto Technologies indicates the total value of its outstanding shares. Marketcap is calculated by multiplying share price and outstanding shares of the company. It is a helpful metric for assessing the company's size and market Valuation. It also helps investors understand how Lumax Auto Technologies is valued compared to its competitors.
Lumax Auto Technologies PE ratio helps investors understand what is the market value of each stock compared to Lumax Auto Technologies 's earnings. A PE ratio higher than the average industry PE could indicate an overvaluation of the stock, whereas a lower PE compared to the average industry PE could indicate an undervaluation.
The PEG ratio of Lumax Auto Technologies evaluates its PE ratio in relation to its growth rate. A PEG ratio of 1 indicates a fair value, a PEG ratio of less than 1 indicates undervaluation, and a PEG ratio of more than 1 indicates overvaluation.
Return on Equity (ROE) measures how effectively Lumax Auto Technologies generates profit from shareholders' equity. A higher ROE of more than 20% indicates better financial performance in terms of profitability.
Return on Capital Employed (ROCE) evaluates the profitability of Lumax Auto Technologies in relation to its capital employed. In simple terms, ROCE provides insight to investors as to how well the company is utilizing the capital deployed. A high ROCE of more than 20% shows that the business is making profitable use of its capital.
Total debt of Lumax Auto Technologies shows how much the company owes to either banks or individual creditors. In simple terms, this is the amount the company has to repay. Total debt can be a very useful metric to show the financial health of the company. Total debt more than equity is considered to be a bad sign.
The Debt-to-Equity (DE) ratio of Lumax Auto Technologies compares its total debt to shareholders' equity. A higher Debt to Equity ratio could indicate higher financial risk, while a lower ratio suggests that the company is managing its debt efficiently.
CAGR shows the consistent growth rate of Lumax Auto Technologies over a specific period, whether it is over a month, a year, or 10 years. It is a key metric to evaluate the company’s long-term growth potential. Main metrics for which CAGR is calculated are net sales, net profit, operating profit, and stock returns.
Technical analysis of Lumax Auto Technologies helps investors get an insight into when they can enter or exit the stock. Key components of Lumax Auto Technologies Technical Analysis include:
There are usually multiple support levels, but the main support levels for a stock are S1, S2, S3. Support levels indicate price points where stock might get support from buyers, helping the stock stop falling and rise.
There are usually multiple resistance levels, but the main resistance levels for a stock are R1, R2, R3. Resistance levels represent price points where Lumax Auto Technologies shares often struggle to rise above due to selling pressure.
Dividends refer to the portion of the company’s profits distributed to its shareholders. Dividends are typically paid out in cash and reflect Lumax Auto Technologies ’s financial health and profitability.
Bonus shares are usually given by companies to make the stock more affordable, increase liquidity, boost investor confidence, and more.
Stock split increases the number of its outstanding shares by dividing each existing share into multiple shares. When the company offers a stock split, the face value of the stock reduces in the same proportion as the split ratio.
The financials of Lumax Auto Technologies provide a complete view to investors about its net sales, net profit, operating profits, expenses, and overall financial health. Investors can analyze financial data to assess the company’s stability and also understand how the company has been growing financially.
The profit and loss statement of Lumax Auto Technologies highlights its net sales, net profit, total expenditure, and operating profits in the current financial year. This Profit and Loss statement is crucial for evaluating the profitability and financial stability of Lumax Auto Technologies .
The balance sheet presents a snapshot of Lumax Auto Technologies ’s assets, liabilities, and equity of shareholders, providing insights into the financials of the company.
Cashflow statements track the company's cash inflows and outflows over a period. It is an essential tool for understanding how well the company manages its liquidity and finances.
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