India's Lumax Auto Technologies extends gains on IAC deal

Lumax Auto Technologies

21/02/2023 07:20

** Shares of auto parts maker Lumax Auto Technologies Ltd
 LUAT.NS  extend gains after buying majority stake in IAC
International Automotive India on Monday 
    ** LUAT shares rise as much as 6.6% to 260.90 rupees,
highest since Dec. 9, 2022
    ** Stock currently trading at 256.50 rupees, taking its
gains across last two sessions to 16.2%
    ** Analysts at Sharekhan say acquisition of automotive
components producer IAC to expand LUAT's EBITDA margin with
cross selling opportunities, rise in content per vehicle
    ** Acquisition to also help co expand from two wheelers to
passenger and commercial vehicles, improving revenue mix -
Sharekhan
    ** Sharekhan maintains "buy" rating on stock with a PT of
288 rupees
    ** IAC, which counts Mahindra and Mahindra Ltd  MAHM.NS 
among its largest customers, may contribute 34% and 31% to
consolidated revenue and EBITDA (before minority interest)
estimates respectively in FY25, per analysts' back of envelope
calculation
    ** Over 1.1 mln shares change hands by 12:38 p.m. IST, 9.3x
their 30-day avg volume
    ** Stock up 2.2% so far this year up to last close
 (Reporting by Nandan Mandayam in Bengaluru)
 ((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))