Lumax declines on profit booking

Lumax Industries fell 2.56% to Rs 1,483.60 at 11:18 IST on BSE, with the stock sliding on profit booking after Monday's rally triggered by the company winning a new customer order.

Meanwhile, the S&P BSE Sensex was up 179.86 points or 0.61% at 29,835.70. The S&P BSE Small-Cap index was up 117.01 points or 0.77% at 15,408.27.

On the BSE, 2,485 shares were traded on the counter so far as against the average daily volumes of 4,251 shares in the past one quarter. The stock had hit a high of Rs 1,540 and a low of Rs 1,481.15 so far during the day.

The stock had hit a record high of Rs 1,561.55 on 24 April 2017 and a 52-week low of Rs 430.50 on 4 May 2016. It had outperformed the market over the past one month till 24 April 2017, surging 11.82% compared with the Sensex's 0.8% rise. The scrip had also outperformed the market over the past one quarter, gaining 38.1% as against the Sensex's 8.33% rise.

Shares of Lumax Industries had rallied 12.2% to settle at Rs 1,522.65 in a single trading session yesterday, 24 April 2017, after the company said after market hours on 21 April 2017 that it has received a new customer order.

Lumax Industries said it has received order to supply new age headlamps and rear lamps for the new generation Maruti Suzuki Swift that commences production later this year at carmakers Gujarat facility in Mehsana district. The order will be fulfilled from the Sanand plant.

Lumax has done a capex of about Rs 120 crore, at Sanand, which is expected to commence operations from November 2017. The capex has been funded through internal accruals.

Going forward, the plant is expected to cater to the needs of TATA Tigor at Sanand as well as HMSI's existing models at Gujarat. The facility will have a capacity of about 3 lakh car-sets annually. The plant is expected to be operational at its full capacity by FY19-20.

On consolidated basis, Lumax Industries' net profit rose 67.7% to Rs 17.04 crore on 3.4% decline in net sales to Rs 297.15 crore in Q3 December 2016 over Q3 December 2015.

Lumax Industries is one the leading players in the automotive lighting industry in India.

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