Lumax Auto Technologies Limited

Consumer Cyclical — Auto Parts · NSE

₹1,962.00+₹49.20 (+2.57%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and sells automotive components in India.

IndustryAuto Parts

SectorConsumer Cyclical

Employees2,853

Annual revenue₹4,682 Cr

How does it make money?

Turns over ₹4,682 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 2,853 employees supports ₹1.64 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin14.6%

Net margin6.0%

Revenue / employee₹1.64 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.

BOSCH LIMITEDP/E 56.9x · ROE 15.9%

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TVS MOTOR COMPANY LTDP/E 56.8x · ROE 35.8%

EICHER MOTORS LTDP/E 34.7x · ROE 23.0%

What is its competitive advantage?Some evidence

ROCE of 24.7% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE24.7%

ROE23.0%

Peer median ROE23.0%

What is the outlook?

5 analysts covering the stock expect revenue to grow about 15.6% and earnings to grow about 26.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.6%

Est. earnings growth+26.6%

Analysts5

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 +162% while net margin moved +15% 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+162%

Margin effect+15%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 41.3x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 42.5x
✗ P/B of 11.05x is a steep premium to book

Quality vs. Valuation

Company Quality

75/ 100

Good

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

Valuation

53/ 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

41.3x

3Y Median

42.5x

40 monthly readings · mean 42.1x · range 25.9x–67.4x

Sector Median

45.7x

median of 4 sector peers

🟡Currently trading close to its 3y median of 42.5x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 45.7x.

vs. its own history

Fair

42.5x median over 40 months · -3%

vs. sector peers

Fair

45.7x median of 4 peers · -10%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

41.3x

P/B

11.05x

EV/EBITDA

21.3x

PEG

0.93

Dividend Yield

0.28%

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 12.0% to 14.6% over 3 years.
Cash generation is improving
Free cash flow is up 296% over 3 years.
Return on equity is rising
ROE has improved from 14.0% to 23.0%.
Return on capital is rising
ROCE has improved from 11.4% to 24.7%.
High return on capital employed
ROCE of 24.7% 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 Attention1

Debt is rising
Total debt is up 85% over 3 years — worth checking what it funded.

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 85% over 3 years, from ₹664 Cr to ₹1,231 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 24.7% 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.
Margin expansion has further to run
EBITDA margin has risen from 12.0% to 14.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

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 28% a year✓ 37.9% CAGR
Latest reported year was 32.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 14.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹213 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 22%✓ 24.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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 · 3 neutral · 2 weak

Market Cap

₹13,373 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

41.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.05x

Rich

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

EPS (TTM)

₹47.55

Profitable

Profitable on a per-share basis

ROE

23.0%

Strong

Strong capital efficiency

ROCE

24.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.83x

Moderate

Moderate leverage

Revenue Growth (YoY)

32.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

109.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

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

Free Cash Flow

₹213 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,962

P/E (Forward)

29.3x

Improving

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

Operating Margin

10.4%

Average

Average margins

Net Margin

6.2%

Average

Average bottom-line conversion

Current Ratio

1.06

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1962.6 / 1963.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

45.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,786 Cr	₹2,761 Cr	₹3,440 Cr	₹4,682 Cr	+37.9%
EBITDA	₹215 Cr	₹398 Cr	₹490 Cr	₹681 Cr	+46.9%
EBITDA Margin	12.0%	14.4%	14.3%	14.6%	—
PAT (Net Profit)	₹93 Cr	₹130 Cr	₹178 Cr	₹279 Cr	+44.3%
EPS	₹13.63	₹19.1	₹26.08	₹40.91	+44.2%
ROE	14.0%	16.5%	19.0%	23.0%	—
ROCE	11.4%	19.9%	21.3%	24.7%	—
Total Debt	₹664 Cr	₹810 Cr	₹902 Cr	₹1,231 Cr	+22.8%
Free Cash Flow	₹54 Cr	₹162 Cr	₹110 Cr	₹213 Cr	+58.2%

🟢 Revenue has grown at 37.9% a year over 3 years.

🟢 EBITDA has grown at 46.9% a year over 3 years.

🟢 EBITDA Margin has risen from 12.0% to 14.6% over 3 years (+2.5 pts).

🟢 PAT (Net Profit) has grown at 44.3% a year over 3 years.

🟢 EPS has grown at 44.2% a year over 3 years.

🟢 ROE has risen from 14.0% to 23.0% over 3 years (+9.0 pts).

🟢 ROCE has risen from 11.4% to 24.7% over 3 years (+13.3 pts).

🔴 Total Debt has grown at 22.8% a year over 3 years.

🟢 Free Cash Flow has grown at 58.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,947 Cr

Total Liabilities

₹2,471 Cr

Total Debt

₹1,231 Cr

Cash & Equivalents

₹82 Cr

Operating Cash Flow

₹460 Cr

Capex

-₹248 Cr

Shareholding (proxy)

Institutional Holding

19.6%

Insider Holding

57.2%

Corporate Actions

Dividend Rate

₹5.5

Ex-Dividend Date

06 Aug 2026

Analyst Consensus

Recommendations

5 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹2,323.2

+18.4% vs CMP

Target Range

₹2,035 – ₹2,560

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

1 positive2 mixed3 general

What Lumax Auto Doubters Got Wrong

Simply Wall Street, 15 Oct

LUMAXTECH Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

Lumax Auto Technologies Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

Lumax Auto Technologies shares rally 19% after Q1 earnings

The Economic Times, 11 AugPrice 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 Auto Tech posts 92% profit surge in Q1FY27 on strong demand

scanx.trade, 11 AugResults

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

Buy Lumax Auto Technologies; target of Rs 2150: Anand Rathi

Moneycontrol.com, 11 Jun

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟡Financial HealthAdequate12.4/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.8/15

🔴ValuationDemanding5.3/15

🟡RiskModerate6/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 28% a year37.9% CAGR
✓EBITDA margin holds above 13%14.6%
✓Free cash flow remains positive₹213 Cr
✓Debt / EBITDA stays below 2x1.8x
✓ROCE stays above 22%24.7%