Lumax Industries, Minda Industries, Endurance Technologies hit record highs


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  Shares of three auto ancillary companies – Lumax Industries, Minda Industries and Endurance Technologies – hit their respective record highs on the BSE in intra-day trade on Monday. In past three months, the market price of these three companies has gain more than 25% each as compared to 10% rise in the S&P BSE Sensex.

Lumax Industries rallied 12% to Rs 1,375, extending its 10% gain in past nine trading sessions. Since February 10, the stock rallied 24% after the company reported 23% year on year (YoY) jump in consolidated net profit at Rs 17 crore for the quarter ended December 2016 (Q3FY17).

EBITDA (earnings before interest, tax, depreciation and amortization) margin improved 190 basis points to 8.6% for Q3FY17 led by increase in operational efficiencies despite flat sales growth.

Lumax Industries had said the sector faced headwind with Government of India’s decision to demonetize high denomination bank notes. However, passenger vehicle segment has been resilient and has shown a good growth. The company witnessed a similar trend for the month of January and post the positive budget, expect to end the year on a strong note.

Minda Industries was up 5% to Rs 413 in intra-day trade, extending its previous two days 4% gain, after The company on February 22, has signed the joint venture agreement with Katolec Corporation, Japan to manufacture the products including high end electronics like printed circuit boards (PCB) and box build assemblies. The joint venture company is proposed to be set in Pune, Maharashtra.

Endurance Technologies gained 2.6% at Rs 708, up 12% in past 12 trading sessions post Q3 results. The company reported 13.5% YoY growth in consolidated net profit at Rs 74 crore in Q3FY17.

Consolidated EBITDA margin improved to 13.8% from 13.3% due to reduction in raw material cost which is partially offset by increase in employee cost and other expenses, the company said.

“Our continued focus on improving operational efficiency and greater engagement with OEM customers has helped us post satisfactory results in this difficult and challenging quarter. We expect that market conditions in India would improve during the fourth quarter,” it added.

    Returns in % Company LTP 1 day 3 mth 6 mth 1 year Lumax Industries 1345.00 10.0 77.9 100.7 264.3 Minda Ind 409.50 3.9 32.8 64.9 154.8 Endurance Technologies 704.00 1.9 28.4 NA NA             Sensex 28918.00 0.1 9.8 4.0 24.8             LTP : Last traded price on BSE in Rs at 12:00 pm