Luceco PLC

Luceco PLC (LSE: LUCE) is an FTSE All Share and United Kingdom-based company that is engaged in the manufacturing and distribution of wiring accessories, light emitting diode (LED) lighting and portable power products for global markets. Its brands include Luceco LED Lighting, BG Electrical, Masterplug, Kingfisher Lighting, DW Windsor, D-Line, CMD, Masterplug, Sync Energy, nexus and Ross. This Report covers the Investment Highlights, Conclusion, and Recommendation on the stock. 

Key Investment Rationale – Speculative Buy at GBX 130.00

• Revenue Growth Supported by Acquisitions and EV Expansion – Luceco reported a nearly 15% rise in half-year revenue compared to the same period last year, with recent acquisitions and the growing demand for EV charging solutions playing a key role. The EV product line in particular saw notable momentum, contributing to an almost doubling of revenues in that segment. This suggests the business is successfully tapping into structural trends like electrification and sustainability.

• Healthy Cash Generation and Dividend Progression – The business delivered improved free cash flow of £10.3 million, recovering from a negative position in the prior year. This turnaround in cash generation, coupled with a modest increase in the interim dividend, indicates that Luceco is maintaining financial discipline while still returning value to shareholders. The Group's debt level remains within its target range, providing further flexibility for strategic initiatives.

• Operational Resilience Amid Mixed Market Conditions – Despite softer demand in some international regions and continued macroeconomic uncertainty, Luceco achieved growth in key UK channels and sustained margins at a healthy level. The company’s vertically integrated manufacturing model and diversified product base appear to be helping it navigate sector pressures while continuing to invest in long-term innovation.

LUCE Daily Chart & Valuation

LUCE Daily Technical Chart, Source - Refinitiv

For conducting the valuation, the following peers have been considered: Stelrad Group PLC (LSE: SRAD), Foxtons Group PLC (LSE: FOXT), and others.

As per the above-mentioned price action and technical indicators analysis, a ‘Speculative Buy’ rating has been given on Luceco PLC (LSE: LUCE) at the Current Market Price of GBX 130.00, as of 29 September 2025, 09:00 AM, GMT+1.

Markets are trading in a highly volatile zone currently due to certain Macro & Micro-economic data and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 29 September 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 6: Dividend Yield may vary as per the stock price movement.