Shares of Lumax Industries Ltd rose nearly 5% on Thursday's early trade following its board's approval for setting up the new project at Chakan, Pune, Maharashtra.
The stock is trading near its 52-week high, and has gained 124.64% from 52-week low of 860.0 from May 16.
According to an exchange filing of the company, the board on Wednesday approved the setting up of new Greenfield Project at Pune with the capital outlay up to 175 crore rupees for Phase 1.
This project will cater to new orders for advanced lighting systems from OEM clients.
"The capital expenditure will be funded by mix of debt and internal accruals, and peak annualised turnover is expected to the tune of 600 crores rupees post commissioning," said the company in an exchange filing.
The project is expected to be commissioned by Q2 FY 24.
The stocks weekly average delivery volume is 41.88%, and the stock price outperformed its sector by 17.55% in the past year.
Analysts believe the overall view for the stock is positive, and 2,100 level can be expected in the near term. The immediate support for the stock is at 1,840 level.
According to a Mintgenie poll, one analyst has recommended 'buy' rating to the stock.