Shares of Lumax Industries Ltd. rose after its board agreed to set up a new greenfield project in Maharashtra.
The company's board approved the setting up of a new greenfield project at Chakan, a town in Pune, Maharashtra, with a capital outlay of up to Rs 175 crore for Phase 1.
This project will cater to new orders from original equipment manufacturers for advanced lighting solutions, the company said in a stock exchange filing yesterday.
The capex will be funded through a mix of debt and internal accruals, the company said.
The auto parts maker expects the peak annualised turnover to be in the range of Rs 600 crore post-commissioning of the project, which is likely to take place by the second quarter of fiscal 2024.
The board also agreed to avail long-term credit facilities to fund this project.
The stock gained as much as 5.55% intraday, the most since Nov. 22, to trade at Rs 1,955. Total traded volume is 8.9 times the 30-day average.
It gained 4.35% to close at Rs 1,932.8 apiece.
All three analysts tracking the company maintain a "buy" rating, according to Bloomberg data. The average 12-month consensus price target implies a return potential of 19.1%.
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