Lumax Auto Technologies Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (2.6x coverage).
• Lumax Auto Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
• Lumax Auto Technologies's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

Pros

• Performance (ROE) is expected to be above the current IN Auto Components industry average.

Cons

• Cash flow for Lumax Auto Technologies is expected to decrease over the next 2 years.
• Lumax Auto Technologies's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
• Lumax Auto Technologies's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
• Lumax Auto Technologies's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
• Lumax Auto Technologies's earnings are expected to decrease over the next year.
• Lumax Auto Technologies's net income is expected to decrease over the next 2 years.
• Lumax Auto Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• A decline in Lumax Auto Technologies's performance (ROE) is expected over the next 3 years.
• Lumax Auto Technologies's revenue is expected to increase but not above the 50% threshold in 2 years time.
• Lumax Auto Technologies's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
• Lumax Auto Technologies's revenue growth is positive but not above the India market average.

health

Pros

• Lumax Auto Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Lumax Auto Technologies is profitable, therefore cash runway is not a concern.
• Lumax Auto Technologies is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (108.8%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 4.8x debt.
• Lumax Auto Technologies's cash and other short term assets cover its long term commitments.
• Interest payments on debt are well covered by earnings (EBIT is 13x coverage).
• Lumax Auto Technologies's level of debt (18.4%) compared to net worth is satisfactory (less than 40%).

Cons

• The level of debt compared to net worth has increased over the past 5 years (12.4% vs 18.4% today).
• High level of physical assets or inventory.

management

Pros

• More shares have been bought than sold by Lumax Auto Technologies individual insiders in the past 3 months.
• The average tenure for the Lumax Auto Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.

Cons

• The average tenure for the Lumax Auto Technologies board of directors is less than 3 years, this suggests a new board.
• Anmol's remuneration is higher than average for companies of similar size in India.
• Anmol's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

misc

Pros

Cons

• Lumax Auto Technologies is covered by less than 3 analysts.
• Lumax Auto Technologies has significant price volatility in the past 3 months.

past

Pros

• Lumax Auto Technologies's year on year earnings growth rate has been positive over the past 5 years.

Cons

• Lumax Auto Technologies's 1-year earnings growth is negative, it can't be compared to the 5-year average.
• Lumax Auto Technologies used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
• Lumax Auto Technologies's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Lumax Auto Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Lumax Auto Technologies's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

value

Pros

• Lumax Auto Technologies is good value based on earnings compared to the IN Auto Components industry average.
• Lumax Auto Technologies is good value based on earnings compared to the India market.
• NSEI:LUMAXTECH is up 8.9% along with the India market (8%) over the past month.

Cons

• Lumax Auto Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• Lumax Auto Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• Lumax Auto Technologies is overvalued based on assets compared to the IN Auto Components industry average.
• Lumax Auto Technologies earnings are not expected to grow next year, we can't assess if its growth is good value.
• LUMAXTECH underperformed the Auto Components industry which returned -22.4% over the past year.
• LUMAXTECH underperformed the Market in India which returned -14.5% over the past year.
• NSEI:LUMAXTECH is up 8.9% underperforming the Auto Components industry which returned 13.2% over the past month.