Lumax Industries Limited (LUMAXIND) AI Stock Analysis

• Market Cap: ₹44.75B
• Dividend Yield: 0.62%
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 30.0
• Beta (1Y): 1.00
• Revenue Growth: 26.75%
• EPS Growth: 20.28%
• Country: IN
• Employees: 2,755
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): N/A
• Shares Outstanding: 9,347,732
• 10 Day Avg. Volume: 1,794
• 30 Day Avg. Volume: 2,193
• PEG Ratio: 0.66
• Price to Book (P/B): 3.10
• Price to Sales (P/S): 0.72
• P/FCF Ratio: -21.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹5,170.00 ▼(-5.51% Downside)

The score is driven primarily by solid underlying operating performance but meaningfully constrained by weak cash flow and higher leverage. Technicals are supportive with a clear uptrend, while valuation is a notable headwind due to the high P/E and low dividend yield.

Positive Factors

Consistent Revenue Growth

Sustained top-line growth indicates expanding OEM share and product adoption across vehicle models. Over a 2–6 month horizon this underpins predictable order flows, supports capacity utilization and funds incremental R&D or product launches, strengthening long-term revenue visibility.

Improved Net Profit Margin

A rising net margin reflects better cost control and pricing discipline, enhancing operating leverage. Persistently higher margins improve cash generation potential (if converted), allow reinvestment in tooling and technology, and increase resilience to commodities or pricing pressure over multiple quarters.

Diverse product mix and OEM partnerships

Supplying lighting, electrical components and after-sales services to major OEMs diversifies revenue and reduces single-customer risk. Combined with international expansion and R&D focus, this creates durable customer stickiness, scale advantages and cross-selling opportunities over the medium term.

Negative Factors

Negative Free Cash Flow

Persistent negative free cash flow constrains the firm's ability to self-fund capex, working capital and debt repayment. Over months this raises refinancing and liquidity risk, forcing reliance on external funding which can limit strategic flexibility and increase financing costs.

Rising Leverage

Higher leverage heightens interest and refinancing exposure, reducing financial flexibility in a cyclical auto sector. If cash conversion does not improve, servicing debt can crowd out reinvestment, limit payouts, and amplify downside risk during demand slowdowns over the medium term.

Operating margin volatility

Volatile EBIT/EBITDA margins indicate sensitivity to input costs, product mix and execution. Structural margin variability complicates forecasting and weakens predictability of earnings and cash flow, making capital planning and investment decisions riskier over the next several quarters.

Lumax Industries Limited Business Overview & Revenue Model

Company Description

Lumax Industries Limited manufactures, trades in, and supplies auto components for two and three wheelers, four wheelers, commercial and passenger vehicles, and tractors/farm equipment in India and internationally. The company offers automotive lighting systems, including head and rear/tail lamps, LED lamps, and sundry and other auxiliary lamps. It serves automotive original equipment manufacturers. Lumax Industries Limited was founded in 1945 and is based in Gurugram, India.

How the Company Makes Money

Lumax Industries generates revenue through multiple streams in the automotive components sector. Its primary revenue model is based on the manufacturing and sale of automotive lighting solutions, which include headlamps, tail lamps, and other lighting products. Additionally, the company earns from supplying electrical and electronic components, such as wiring harnesses and sensors, which are essential for modern vehicles. Significant partnerships with leading automotive brands enhance Lumax's market position and contribute to steady revenue growth. The company also benefits from a robust after-sales service model, providing maintenance and support for its products. Furthermore, the expansion into international markets and ongoing investments in research and development for innovative automotive solutions are critical factors driving its earnings.

Lumax Industries Limited Financial Statement Overview

Summary

Financials show steady revenue growth and improved net profit margin (4.21% in 2024), but are held back by negative free cash flow in recent years and rising leverage (debt-to-equity at 1.15), which increases financial risk if cash generation does not improve.

Income Statement

Lumax Industries Limited has shown consistent revenue growth over the years, with a notable 4.59% increase in the latest period. The gross profit margin has been stable, although it was not provided for the latest year. The net profit margin improved to 4.21% in 2024, indicating better cost management. However, the EBIT and EBITDA margins have seen fluctuations, suggesting some volatility in operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.15, indicating a higher reliance on debt financing, which could pose a risk if not managed carefully. The return on equity has been strong in previous years but was not available for the latest period. The equity ratio suggests a moderate level of equity financing relative to total assets.

Cash Flow

Lumax Industries has faced challenges with free cash flow, which has been negative in recent years, reflecting potential liquidity issues. The operating cash flow to net income ratio is relatively low, indicating that cash generation from operations is not as robust as it could be. The negative free cash flow to net income ratio further highlights the need for improved cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	35.45B	33.55B	26.37B	23.20B	17.49B	14.24B
Gross Profit	9.85B	10.44B	8.81B	8.08B	6.22B	5.21B
EBITDA	3.54B	2.89B	3.00B	2.17B	1.32B	1.25B
Net Income	1.42B	1.40B	1.11B	1.03B	407.25M	181.52M
Balance Sheet
Total Assets	0.00	28.61B	26.01B	18.66B	15.46B	13.62B
Cash, Cash Equivalents and Short-Term Investments	96.97M	107.60M	564.20M	76.02M	180.21M	121.30M
Total Debt	0.00	8.88B	7.23B	4.31B	4.01B	3.38B
Total Liabilities	-7.74B	20.87B	19.29B	12.82B	10.55B	9.02B
Stockholders Equity	7.74B	7.74B	6.72B	5.84B	4.92B	4.60B
Cash Flow
Free Cash Flow	0.00	-1.12B	-1.30B	171.07M	-214.94M	88.26M
Operating Cash Flow	0.00	2.12B	1.32B	1.08B	1.08B	762.06M
Investing Cash Flow	0.00	-2.93B	-2.45B	-900.79M	-1.29B	-307.21M
Financing Cash Flow	0.00	588.42M	1.37B	-259.53M	341.90M	-505.98M

Lumax Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5471.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LUMAXIND, the sentiment is Positive. The current price of 5471.5 is above the 20-day moving average (MA) of 5149.85, above the 50-day MA of 5369.55, and above the 200-day MA of 4192.06, indicating a neutral trend. The MACD of -153.18 indicates Positive momentum. The RSI at 51.59 is Neutral, neither overbought nor oversold. The STOCH value of 58.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:LUMAXIND.

Lumax Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LUMAXTECH	73 Outperform	₹93.71B	44.31	―	0.35%	36.70%	36.24%
SHRIPISTON	73 Outperform	₹117.85B	21.70	―	0.31%	14.43%	15.60%
MINDACORP	69 Neutral	₹134.78B	49.88	―	0.23%	12.99%	2.43%
SHARDAMOTR	66 Neutral	₹48.66B	14.57	―	2.75%	6.96%	6.33%
LUMAXIND	66 Neutral	₹44.75B	29.97	―	0.62%	26.75%	20.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RAYMOND	58 Neutral	₹25.84B	0.50	―	2.31%	-63.26%	-29.33%

Lumax Industries Limited Corporate Events

Lumax Industries Clarifies Recent Surge in Trading Volume

Lumax Industries Limited has observed a significant increase in the trading volume of its securities. The company clarified that it remains compliant with SEBI regulations and is unaware of any undisclosed material information affecting the recent trading activity. The increase in volume is deemed to be market-driven, with no internal developments influencing this change.

Lumax Industries Releases Q2 FY 2025-26 Earnings Call Transcript

Lumax Industries Limited has released the transcript of its Q2 FY 2025-26 earnings conference call, highlighting the company’s operational and financial performance for the quarter and half-year ending September 30, 2025. This release provides stakeholders with insights into the company’s current market standing and future outlook, reinforcing its commitment to transparency and investor relations.