Lumax Auto
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Lumax Auto Technologies is strategically positioned for growth, driven by its 'Northstar' vision, which emphasizes high-margin mechatronics and electric vehicle (EV) components. Management's focus on premiumization and localization aims to mitigate global supply chain risks and input cost pressures, supporting a projected revenue CAGR of over 20% through FY31. The company's robust order book, with 40% from future mobility solutions, underpins this optimistic outlook. However, challenges such as rising commodity prices and geopolitical instability could impact margins and operational stability. Vista's financial outlook reflects a stable margin expectation and fair valuation, with a target price of ₹2,250, indicating an expected upside of approximately 10%. The auto ancillaries sector is experiencing a sunrise phase, bolstered by government incentives for EV adoption, although global sales declines pose risks. Over the next 12-24 months, key opportunities include expanding into clean mobility and enhancing product offerings, while watchpoints include managing cost pressures and ensuring successful integration of strategic acquisitions
Why We Like This Stock
- Strategic focus on high-margin mechatronics and EV components supports robust revenue growth
- Strong order book with significant contributions from future mobility solutions enhances growth visibility
- Management's commitment to premiumization and localization mitigates supply chain risks
Things To Watch Out For
- Rising commodity prices may pressure profit margins and operational stability
- Geopolitical tensions could disrupt supply chains and impact market confidence
- Execution risks associated with strategic acquisitions and new product integrations remain
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,822 | 3,637 | 4,870 | 5,310 | 6,317 |
| Profit Before Tax (Cr.) | 226 | 302 | 420 | 518 | 599 |
| PBT Margin | 8.0% | 8.3% | 8.6% | 9.8% | 9.5% |
| Net Profit (Cr.) | 171 | 224 | 308 | 379 | 356 |
| Earnings Per Share | 19.6 | 25.4 | 36.7 | 45.2 | 52.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 2,150 | 11-Jun-2026 |
| ICICI Securities | ▲ Buy | 2,035 | 02-Jun-2026 |
Company Overview
Show Company Profile
Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and sells automotive components in India. The company offers advanced plastics, such as panels, centre consoles, door panels, headliners and interior trim systems, air intake systems, urea and plastic fuel tanks, headliners, trims, louvers, head lamps, tail lamps, and front and rear fenders; mechatronics, including power window switches, oxygen sensors, telematics control units, shark fin antennas, telematics antennas, and emission control management solutions; structures and control systems comprising gear shifter, metallic chassis and swing arm for 2-wheelers; aftermarket products, such as lighting, bulbs, horns, wiper blades, filters, control cable, electrical equipment, engine oils and lubricants, and mirrors; and alternate fuels consists of CNG & Hydrogen Solutions, ferrule-less tubes and fittings, pre-bend tubes, CNG manifold, H2 receptacle, CNG safety kit, and ferruleless tubes and fittings. It also sells various automotive parts and components, as well as moulds and tools for PV, CV and two/three-wheelers. The company serves two, three, and four-wheeler commercial vehicles; and original equipment manufacturers. It also exports its products. The company was formerly known as Dhanesh Auto Electricals Limited and changed its name to Lumax Auto Technologies Limited in 2006. Lumax Auto Technologies Limited was incorporated in 1981 and is based in Gurugram, India.