Lumax Industries Limited

Consumer Cyclical — Auto Parts · NSE

₹5,515.00+₹112.50 (+2.08%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Lumax Industries Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lumax Industries Limited manufactures and sells automotive components for in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees3,236

Annual revenue₹4,147 Cr

How does it make money?

Turns over ₹4,147 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation. Each of its 3,236 employees supports ₹1.28 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.28 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 21.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 18.8% against a peer median of 23.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE23.0%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 16.8% and earnings to grow about 39.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+16.8%

Est. earnings growth+39.6%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +79% while net margin moved -7% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+79%

Margin effect-7%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 27.5x already prices in growth
• P/E is close to its own historical median of 25.2x
✗ P/B of 5.62x is a steep premium to book

Quality vs. Valuation

Company Quality

64/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

65/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

27.5x

3Y Median

25.2x

40 monthly readings · mean 27.1x · range 18.3x–40.4x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 25.2x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 40% below the peer median of 45.7x.

vs. its own history

Fair

25.2x median over 40 months · +9%

vs. sector peers

Cheap

45.7x median of 4 peers · -40%

vs. generic bands

Fair

15x–35x

EV/EBITDA

13.1x

PEG

1.47

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 386% over 3 years.
High return on capital employed
ROCE of 21.7% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 126% over 3 years, from ₹431 Cr to ₹973 Cr.
🟡Receivables growing faster than salesFinancial
Receivables up 106% against revenue up 79% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.76 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 21.7% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 40% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 106% against revenue up 79%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 16% a year✓ 21.4% CAGR
Latest reported year was 32.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 11.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✓ ₹83 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 19%✓ 21.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹5,155 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

27.5x

Fair

Fairly valued against the generic band

P/B Ratio

5.62x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹200.43

Profitable

Profitable on a per-share basis

ROE

18.8%

Strong

Strong capital efficiency

ROCE

21.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.06x

Moderate

Moderate leverage

Revenue Growth (YoY)

32.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

41.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.00%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹83 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

16.1x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

5.5%

Average

Average margins

Net Margin

4.2%

Average

Average bottom-line conversion

Current Ratio

0.76

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.89

Market-like

Moves roughly in line with the market

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5546.7 / 5794.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

36.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,316 Cr	₹2,631 Cr	₹3,355 Cr	₹4,147 Cr	+21.4%
EBITDA	₹261 Cr	₹299 Cr	₹359 Cr	₹465 Cr	+21.2%
EBITDA Margin	11.3%	11.4%	10.7%	11.2%	—
PAT (Net Profit)	₹103 Cr	₹111 Cr	₹140 Cr	₹172 Cr	+18.7%
EPS	₹110.27	₹118.77	₹149.67	₹184.5	+18.7%
ROE	17.7%	16.5%	18.1%	18.8%	—
ROCE	22.4%	19.1%	20.4%	21.7%	—
Total Debt	₹431 Cr	₹723 Cr	₹888 Cr	₹973 Cr	+31.2%
Free Cash Flow	₹17 Cr	-₹129 Cr	-₹112 Cr	₹83 Cr	+69.4%

🟢 Revenue has grown at 21.4% a year over 3 years.

🟢 EBITDA has grown at 21.2% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 11.2% over 3 years.

🟢 PAT (Net Profit) has grown at 18.7% a year over 3 years.

🟢 EPS has grown at 18.7% a year over 3 years.

🟢 ROE has risen from 17.7% to 18.8% over 3 years (+1.1 pts).

🟡 ROCE has held roughly flat at 21.7% over 3 years.

🔴 Total Debt has grown at 31.2% a year over 3 years.

🟢 Free Cash Flow has grown at 69.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,435 Cr

Total Liabilities

₹2,518 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

₹373 Cr

Capex

-₹289 Cr

Shareholding (proxy)

Institutional Holding

7.6%

Insider Holding

76.1%

Corporate Actions

Dividend Rate

₹55

Ex-Dividend Date

06 Aug 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹7,242.67

+31.3% vs CMP

Target Range

₹6,578 – ₹8,050

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive2 mixed2 general

What Does Lumax Industries Limited's (NSE:LUMAXIND) Share Price Indicate?

Simply Wall Street, 04 Jun

Lumax Industries Share Price Target 2027 to 2030: Analyst Outlook

Univest, 17 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Buy Lumax Industries; target of Rs 7100: Choice Institutional Equities

Moneycontrol.com, 12 Aug

Lumax Industries Share Price Surges 29% In 2 Days After Q3 Results | Stock Market Today

Samco, 11 FebPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Lumax Industries Q4 profit jumps 23% to ₹54.1 Cr as revenue hits ₹1,200 Cr

Sahi, 28 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Lumax Industries Limited Recommends Final Dividend for the Financial Year 2025-26, Payable on or Before September 24, 2026

marketscreener.com, 28 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Risk

WeakValuation

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA stays below 2x · see Key things to watch ↑