Jagan Lamps Ltd plans capacity expansion

India has emerged as a Global hub for Auto Components sourcing and the Industry Exports around 25% of its production annually. At JAGAN LAMPS, we are continuously focusing on meeting customer demands by providing them with new models and new variants. We continue to focus on our core strength of innovation and expansion to offer value added, high quality products to our customers across the globe.

Jagan Lamps Limited ("The Company") is currently exporting around 30% of its production annually to around 40 Countries globally and has strong order book for the next 2-3 years.

The Company is at the fag end of the capex cycle. It is running at ~ 85-90% capacity utilization. Hence as per favorable overall market conditions, The Company has planned for capacity expansion by the end of Financial Year 2021-22. The company is expected to operate at "65-70% capacity utilization, which will give the Company bandwidth to grow business for another 2-3 years at minimal capex. The capacity expansion will make the Company One of the Largest Manufacturer of Automotive Bulbs in India with Widest Range under its Portfolio.

The proposed Capital Expenditure in Plant & Machinery, Utilities and other related infrastructure will be financed by mix of internal accruals and debt.

Shares of JAGAN LAMPS LTD. was last trading in BSE at Rs. 62.70 as compared to the previous close of Rs. 66.95. The total number of shares traded during the day was 28437 in over 304 trades.

The stock hit an intraday high of Rs. 69.85 and intraday low of 61.25. The net turnover during the day was Rs. 1844399.00.

Source : Equity Bulls

Keywords

JAGANLAMPSLTD INE144C01014 CapacityExpansion CapacityUtilization Capex