Lumaxtech share price is in Bullish Momentum: did you buy?

Lumaxtech share price (Lumax Auto Technologies Limited) is one of the bullish momentum stocks. The stock looks strong in its technical chart with strong trading volume over the last 5 trading days. The trading volume of the script is above 100 DMA during this period. It seems the counter is ready to move up sharply. The stock completed its correction and formed a bottom at the 224 level and is moving up.

Lumaxtech share price Technical Analysis

Lumaxtech share price is trading above all its short and long-term moving averages on the daily chart. The stock is also trading above its super trend signals and is in a bullish up move.

On the daily chart, the share has formed a rounding bottom pattern and crossed its previous swing high of 264 level with strong volume. Lumaxtech share price is also looking strong in the weekly chart with strong volume over the last four weeks. On the daily chart, lumaxtech share price is forming higher highs for the last 5 trading days on 25 Nov. 22. This share looks strong for both short- and long-term investments at this level.

Bullish momentum indicators ADX and MACD look bullish on the daily chart. One may buy at this level or at dips for a 10 to 20% gain in the short term. Lumaxtech share price is trading at 28 Price to Earnings (PE) and available at 3.22 price-to-book (PB) value while sector PE is 138.6 PE and 5.84 PB. The debt-to-equity ratio of the company is 0.23 in FY22. The counter seems cheap in comparison to its sector PE. The fundamentals of the company with a low debt-to-equity ratio make it attractive. It is a good stock to accumulate in correction.

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Lumaxtech share price Fundamental Analysis

Fundamentally, Lumaxtech is a strong company. Lumax Auto Technologies Limited was founded in 1981 in Maharashtra. Initially, the company manufactured lighting products for two-wheelers. Lumaxtech now manufactures a diversified range of products catering to two, three, and four-wheeler segments along with its Subsidiaries and Associates. The company is one of the few integrated auto component manufacturers in India. The company is the sole domestic company with the competency to manufacture and supply gear levers for electric cars.

According to the latest presentation, the product portfolio of the company includes 2-wheeler lighting, 2-wheeler Chassis, Electrical & Electronics Components, Gear Shifters, Intake systems, Integrated Plastic Modules, Oxygen Sensors, Seat Structures & Mechanisms, Telematics Products & Services, and Aftermarket. The company is present in 31 plants in 31 locations across India strategically located to the customers. Lumaxtech partnered with various companies across worldwide in countries like Japan, Italy, Spain, Germany, and Israel. Domestically, Maruti, Honda, Mahindra, Tata, TOYOTA, FIAT, SKODA, etc. are among the major customers of the company.

Lumaxtech Share Financial Analysis

Despite the challenges faced by the auto industry during the last few quarters, Lumaxtech delivered strong quarterly revenue in Jun 2022 quarter. The company’s sales rose 61.98% to INR 421.93 crore in the quarter ended June 2022 from INR 260.48 crore during the previous quarter ended June 2021.  The group reported a 539.59% jump in its profit to INR 21.81 crore in the quarter ended June 2022 from INR 3.41 crore during the previous quarter ended June 2021.

Lumaxtech is a small-cap company with a market cap of INR 1947 crores with a face value of INR 2. Return on capital employed is ~18.4 percent while return on equity is ~13 percent. Promoters have not changed their holdings from June 2021 to June 2022 and they remained the same at 55.98 percent. DII has increased its holdings in the company from 5.28 % in March 2022 to 5.67% in June 2022. FIIs have also increased their holdings from 19.34 % in Mar 2022 to 19.53 % in June 2022.This reflects that both DIIs and FIIs are confident about the company’s performance.

Company Promoters and Management

Lumax Auto Technologies Limited is run by strong leadership. Mr. Dhanesh Kumar Jain is the Chairman of the company. He has over 50 years of experience in the automotive industry in management, operations & administrative roles. He also served as president of ACMA, president of supplier’s association – Toyota Kirloskar Motors, Chairman of Trade Fairs Committee ACMA, Co-chairman of Regional Committee on Membership of Northern Region CII, and Past Chairman of CSR sub-committee of the Northern Region of CII.

Suggested Reading on Momentum stock section India Glycols, Gokex, Elgi Equipments, and PCBL. Company profile mamaearth.

Lumaxtech share price NSE Daily Chart
Lumaxtech share price Daily Chart
Lumaxtech share price Weekly Chart
Lumaxtech share price Weekly Chart