Lumax Industries - Medium Term Buy Pick

CMP : 169
Target : Rs 240
Time Frame : 5-6 months
Company Profile

Lumax has seven ultra modern manufacturing plants in India. Of these, two are located in cities of Gurgaon , Dharuhera in the state of Haryana, near New Delhi and three plants in Pune , near Mumbai in Maharashtra and one plant near Chennai .Today Lumax accounts for over 60% market share in Indian Automobile Lighting Business, fueled in no small measure by its two decade old technical and financial collaboration with Stanley Electric a japanese company, has a strong presence in the original equipment market with its clients including leading auto companies such as Maruti Udyog, Tata Motors, Hero Honda, and Mahindra and Mahindra.

Lumax Industires is in a plan to expanding its business byinvesting Rs 200 crore over the next 12 months to modernise its existing plants and to set up three greenfield manufacturing facilities.
Positve Break seen in this stock and trading above 50 Days of SMA of 168.90.Huge and lengthy consolidation seen between 180 and 160 with support coming at 155 levels so keep a stop loss below 155 levels.
Good to Grab at this level for a target of 200 in short term.