Lumax Auto Applied sciences surges 10%, hits file excessive on improved outlook

Shares of Lumax Auto Applied sciences surged 10 per cent to hit a file excessive of Rs 228 on the BSE in Friday’s intra-day commerce. Previously 17 buying and selling days, the inventory of the auto parts firm has zoomed 47 per cent on expectation of improved outlook. It surpassed its earlier excessive of Rs 224, touched on August 16, 2018. As compared, the S&P BSE Sensex was up 0.24 per cent 53,540 factors at 10:36 am.

Growing offtake from car Authentic Tools Producers (OEMs), on the again of an bettering demand state of affairs, together with pentup demand, sturdy after market demand, and elevated pockets share with its main prospects afre more likely to be the expansion catalysts for the corporate.

Lumax Auto Applied sciences, via its wholly owned subsidiaries and joint ventures, has been a producer of a variety of merchandise together with built-in plastic modules, 2/3‐wheeler lighting, chassis, gear shifter, shift towers, emission techniques, seat frames, oxygen sensors, and electrical gadgets & parts.

The corporate is engaged with OEM’s (Authentic Tools Producer’s) in passenger car (PV), two-wheeler, 3 wheeler, industrial car and off street car section. Its key prospects embrace Bajaj Auto, Honda Bikes and Scooters, Mahindra & Mahindra, Maruti Suzuki, Tata Motors, and Toyota.

Close to regular financial exercise, wholesome retail gross sales (Q1FY23 averaging at round 92 per cent of pre-Covid ranges), strong demand in PV section amid new launches within the SUV area, reduce in excise responsibility on fuels and plummeting key uncooked materials costs (primarily metals) in direction of the fag finish of the quarter put up their peak in April-Could 2022 had been the important thing highlights for the auto sector throughout April-June quarter (Q1FY23).

In FY21-22, Lumax Auto Applied sciences had recorded its highest-ever income & profitability. General business manufacturing witnessed 1 per cent progress YoY, whereas the corporate’s consolidated topline grew by 36 per cent in FY21-22.

As regards FY23, the corporate expects home gross sales and exports to rebound as the worldwide financial system (together with India) is experiencing a robust restoration. “Furthermore, motorized vehicle producers introduced and/or executed new funding initiatives to seize the demand from first time consumers within the home market,” Lumax Auto mentioned in FY22 annual report.

The rising demand for security, emission, consolation necessities in cars is paving the way in which forward for firms centered on supplying import-substitute merchandise to the Indian markets.

“With excessive progress prospects within the Automobile business, the Auto Part sector is anticipated to rise by double digits in FY 2022-23. The Authorities’s current bulletins of Manufacturing Linked Incentive (PLI) schemes relating to Superior Chemistry Cell (ACC) Batteries and Auto & Auto Parts is anticipated to pave means for the creation of a state-of-theart automotive worth chain,” the corporate mentioned

Help: Rs 206.30 – Rs 209.50

Resistance: Rs 232.50, Rs 252


The short-term development for Lumax Auto turned optimistic in late June, since then the inventory has rallied nearly 38 per cent within the final 15 buying and selling classes.


The value-to-moving common motion is clearly bullish for the inventory, with the 50-DMA additionally now crossing over the 100-DMA (Each day Shifting Common). The 20-DMA was already above the 50- and 100-DMAs.


Additional, the inventory additionally has been buying and selling firmly above the higher-end of the Bollinger Band, each, on the weekly and month-to-month charts, thus indicating a robust optimistic bias so long as the inventory holds above the Rs 206.30 – Rs 209.50 vary.


On the upside, the inventory has close to resistance round Rs 232.50, above which it might probably rally to Rs 252-odd stage, signifies the quarterly Fibonacci chart.

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