Lumax Auto Tech.

Frame Assy : Model - Wind-125 Frame Assy : Model - CT-100 Exhaust Muffler : Model - Pulsar Muffler Assy : Model - Wave Silencer Assly - Spirit 4S Petrol Tank Assy : Model - Spirit Handle Bar Assy : Model - Wave Fork Assly - Spirit 4S Cable type Gear Shift Lever Rod Linkage type Gear Shift Lever Parking Brake

1.) Revenue Breakup : 2W (Bajaj Auto) = 55% - 60% 4W = 40% - 45% 2.) Co. is a "single source supplier" to its customers. 3.) Till 2007, almost all the revenues used to come from Bajaj Auto. 4.) Cos. Sales have increased 12.5x during the last 8 years from less than Rs.60Cr. in FY04 to Rs.750Cr. in FY12. 5.) Current Average Capacity Utilization - 80% - 85% 6.) The co. can "pass on" input price increases to its customers. 7.) After market sales (replacement market) = Rs.130Cr. (~ 17.5% of Total Sales) 8.) Co. has a market share of 65% in "Gear Shift Assembly". 9.) The co. is planning to set up a greenfield plant in Banglore for HMSI with a capital outlay of Rs.80Cr. 10.) FY13E Sales growth = 15%....................................................(Management Guidance) 11.) FY14-20E Sales CAGR = 20%....................................................(Management Guidance) 12.) FY20E PBT Margin = 10%....................................................(Management Guidance) 13.) The USP of this co. is that it has been able to sustain a sales CAGR of 37% during the past 8 years primarily through internal accruals. In other words, although the sales have grown from Rs.60Cr. in FY04 to Rs.750Cr. in FY12, the equity capital infused during this period was less than 30Cr. & at the end of this period (31/03/12), the co. has Net Cash of around Rs.35Cr. 14.) During the past 3 years the co. is producing operating cash flows of around Rs.50Cr. 15.) Promoter has 50 years experience in auto ancillary industry.  16.) Valuations : TTM  CMP = Rs.141/- MCap = Rs.192Cr. Cash + Quoted Investments = Rs.54Cr.  EV = Rs.138Cr. EBITDA = Rs. 70Cr. EV / EBITDA = 1.97x PE = 3.7x Div. Yield = 4.25% RoE = 30%