Outlook & Valuation: Strong relationship with majority of Auto OEM, increasing sales of
PV, 2W and CV and Improving revenue mix from Halogen lamp to LED lamp leads to
better revenue and realization going ahead. Moreover LIL is also looking to localizes the
manufacturing of LED lamp which is currently imported, management believe this will
help LIL to improve margin up to 10% by FY20. We like to initiate coverage on the LIL
with BUY recommendation. At the CMP of INR 2055 LIL is available at 17X of FY20E EPS
INR 122. On the basis of above arguments we like to assign a multiple of 21X on FY20 EPS
to arrive at price target of INR 2550 (upside 24%).

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