With over 60 per cent market share in the supply of head, tail, sundry and auxiliary lamps, Lumax Industries has been a beneficiary of the upswing in automobile sales after the slowdown of 2008-09. More so, because it caters not only to the passenger car segment but also to two-wheelers and the fast growing small LCV segment. During 2010-11, the company was roped in for new launches such as the Alto K10 (as the 100 per cent supplier) and the Toyota Etios.

Another promising development was the addition of both Audi and Jaguar Land Rover to its clientele for providing LED High Mount Stop Lamps. Besides, it is bringing in LEDs in front lighting for two-wheelers, and for interior and exterior lighting in four-wheelers shortly. The company also introduced a new technology for achieving different colours without joints in the tail-lamp lens during the year, and began supply of such lamps to the Honda Jazz. It will soon be delivering these to Maruti Suzuki as well.

With plastic powder and bulbs being the primary inputs, Lumax was also relatively shielded from the impact of rising price of commodities like rubber, lead, aluminium and steel during this time. However, at 22 times its trailing earnings, valuations look a bit stretched, considering that large-cap auto makers still trade at lower PE multiples. Further upside may hence be limited.

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