+

Ideas 20-20 Conference

Naresh Kumar Katariya
27th August 2016

Ideas 20-20: Naresh Kumar Katariya

+ Investment Strategy: G-O-V Model

Ideas 20-20: Naresh Kumar Katariya

+ Investment Strategy: G-O-V

Deep Insight of Industry/Company, to enable:

Right Position Sizing

Realizing the full potential

Ideas 20-20: Naresh Kumar Katariya

+ Tell Me Where I am Going to Die, So I Wont Go

There Charlie Munger
Key variables to watch out for and avoid:

High Receivable Days

Low Dividend Payout Ratio

High Valuations

Lack of Free Cash Flow

Ideas 20-20: Naresh Kumar Katariya

+ Investment Idea: Lumax Auto Technologies

The

investment idea is more to explain my

investment strategy, rather than a stock
recommendation

Ideas 20-20: Naresh Kumar Katariya

+ Car Penetration levels in India set to grow

Ideas 20-20: Naresh Kumar Katariya

+ Automatic Car Penetration in India is far below

global levels

Ideas 20-20: Naresh Kumar Katariya

+ Demand for Automatic Transmission is

picking up

Ideas 20-20: Naresh Kumar Katariya

+ Lumax Auto Technologies

Lighting
Two-wheeler Frames
Moulded Parts

Lumax Mannoh
(55%)
Automatic
Transmission
70.3 Cr

Lumax Cornaglia
(50%)
Emission
Systems
38 Cr

Ideas 20-20: Naresh Kumar Katariya

Lumax Sipal

Lumax Gill-Austem

(50%)
Seating
Systems

(51%)
Defense
Logistics
Support

10

Investment Highlights

Operating Leverage: Working at less than 75% Capacity

Utilization.

Major investments completed. Fixed Assets from 211 Cr

(FY13) to 332 Cr (FY16). No major capex for FY17 and FY18.

25% of sales from Aftermarket. Expected to grow due to

ongoing focus.

Lumax Mannoh is sole supplier of Automatic Transmission

systems to Toyota Innova Crysta, Maruti Baleno.

Lumax Cornaglia benefits from move to Euro-VI Emission

norms

Ideas 20-20: Naresh Kumar Katariya

11

Financial Summary: Lumax Auto Tech

Sales (Cr)
EBIDTA %
Depreciation (Cr)
Consol PAT (Cr)
Div. Payout (%)
RoE %
Working Cap Days

FY16

FY15

FY14

FY13

FY12

FY11

FY10

FY09

905.15

837.17

762.76

766.30

751.48

626.69

416.92

296.30

7.55%

7.98%

7.92%

8.75%

8.72%

9.23%

8.57%

7.64%

20.86

19.36

17.60

10.83

7.98

7.00

6.00

4.33

31.77

30.20

30.23

41.05

50.73

43.68

22.92

11.39

20.16%

31.59%

27.05%

19.92%

16.12%

18.72%

17.84%

11.97%

11.97%

12.56%

13.83%

20.83%

31.28%

39.15%

31.51%

19.23%

9.28

8.98

-1.89

5.38

8.65

3.37

-0.74

7.49

Ideas 20-20: Naresh Kumar Katariya

17.3% CAGR

12

Points of Caution/Consideration
Current

valuations not very compelling: 12x of

FY17E
Customer

Concentration: Bajaj contributes over

25% of sales

Ideas 20-20: Naresh Kumar Katariya

13

nA

Ideas 20-20: Naresh Kumar Katariya

14

Thank You

Ideas 20-20: Naresh Kumar Katariya

15

About Speaker: Naresh Kumar Katariya

Passionate value investor, combining traditional

investing approach with Business analytics and
Sentiment analysis

Engineer with specialization/certification in Risk

Management

Earlier career in Consulting in Risk and Compliance

with global experience covering over a dozen markets
worldwide.

Reachable at Twitter @KhivrajNaresh &

www.moneycurves.blogspot.in

Ideas 20-20: Naresh Kumar Katariya