Lumax Auto Technologies Limited (LUMAXTECH) AI Stock Analysis

• Market Cap: ₹113.92B
• Dividend Yield: 0.35%
• Average Volume (3M): 16.65K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 1.03
• Revenue Growth: 36.70%
• EPS Growth: 36.24%
• Country: IN
• Employees: 2,226
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 12.10
• Shares Outstanding: 68,157,710
• 10 Day Avg. Volume: 12,802
• 30 Day Avg. Volume: 16,651
• PEG Ratio: 0.57
• Price to Book (P/B): 3.96
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 33.61
• 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: ₹1,800.00
• Price Target Upside: 8.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 45.02
• Revenue Forecast (FY): ₹47.26B

• Rating: 66 Neutral
• Price Target: ₹1,654.00 ▼(>-0.01% Downside)
• Action: Downgraded Date: 03/05/26
• Date: Action: Downgraded 03/05/26

The score is primarily supported by strong financial performance (growth, improving margins, solid cash generation). This is offset by a mixed technical picture with weak near-term momentum and a valuation that looks expensive relative to the low dividend yield.

Positive Factors

Strong Revenue Growth

Sustained ~40% revenue growth reflects expanding OEM content and successful order capture across vehicle platforms. This level of top-line expansion supports scale economies, stronger supplier bargaining, and longer-term agreements that can stabilize future cash flows and margin recovery.

Improving Profitability

Reported improvements in gross and net margins and strong EBIT/EBITDA indicate durable operational improvements and cost control. Higher margin profile increases resilience to cyclical downturns, funds reinvestment in product development, and supports sustainable return on capital.

Healthy Operating Cash Flow

Consistent operating cash generation and growing free cash flow improve financial flexibility to fund capex, service debt, and invest in new modules. Strong cash conversion from earnings underpins long-term solvency and enables strategic investments in technology and capacity.

Negative Factors

OEM Demand Concentration

Heavy reliance on OEM production links revenue to vehicle cycle, model refresh timing and platform changes. This structural exposure creates earnings volatility across 2-6 month horizons and raises risk if key OEM programs decline or content-per-vehicle normalizes.

Inconsistent Free Cash Flow

While FCF has grown, noted inconsistency can hamper steady reinvestment, debt reduction, or shareholder distributions. Variable FCF constrains the company’s ability to fund multi-year product development or absorb OEM order timing shifts without tapping external financing.

Room to Reduce Liabilities

Balance sheet leverage is reasonable but remaining liabilities reduce financial headroom. Elevated obligations limit flexibility to pursue M&A, withstand prolonged demand weakness, or lower financing cost, making the company more sensitive to adverse industry cycles.

Lumax Auto Technologies Limited Business Overview & Revenue Model

Company Description

Lumax Auto Technologies Limited, together with its subsidiaries, manufactures and sells in automotive components in India. It offers integrated plastic modules; 2-wheeler chassis and swing arms; 3-wheeler trailing arms; 2/3 wheeler lighting products; gear shifters; sift towers; emission systems; seat frames; oxygen sensors; telematics products; antennas; on-board antennas; and electric devices and components. The company serves two, three, and four-wheeler commercial vehicle and off-road vehicle 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 New Delhi, India.

How the Company Makes Money

LUMAXTECH generates revenue primarily through the sale of automotive components to OEMs and aftermarket retailers. Key revenue streams include the production of lighting systems, electronic components, and specialized automotive accessories. The company benefits from long-term contracts and partnerships with major automotive manufacturers, ensuring a consistent demand for its products. Additionally, LUMAXTECH invests in research and development to innovate new products, which can lead to increased sales and market share. The company also capitalizes on expanding markets, including electric vehicles and advanced driver-assistance systems (ADAS), further enhancing its revenue potential.

Lumax Auto Technologies Limited Financial Statement Overview

Summary

Strong overall fundamentals driven by robust revenue and profit growth (Income Statement score 85). Balance sheet is solid with moderate leverage and improving ROE (Balance Sheet score 75). Operating cash generation is healthy and supports positive free cash flow, though consistency can improve (Cash Flow score 78).

Income Statement

Lumax Auto Technologies has demonstrated robust revenue growth with a significant increase over the past year. The gross profit margin and net profit margin have shown improvement, indicating enhanced operational efficiency. The EBIT and EBITDA margins are strong, reflecting effective cost management and profitability.

Balance Sheet

The company's balance sheet is solid with a reasonable debt-to-equity ratio, indicative of balanced leverage. The return on equity shows a positive trend, suggesting effective use of equity to generate profits. The equity ratio is stable, reflecting a healthy capital structure, although there is room for improvement in reducing liabilities.

Cash Flow

The cash flow statement reflects healthy operating cash flow relative to net income, indicating strong cash generation from operations. While the free cash flow has grown, the consistency of free cash flow generation could be enhanced. The company is effectively managing capital expenditures, contributing to positive free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	39.07B	36.37B	28.22B	18.47B	15.21B	11.08B
Gross Profit	13.79B	12.39B	9.81B	2.43B	4.10B	3.11B
EBITDA	5.46B	5.16B	4.14B	2.15B	1.62B	1.15B
Net Income	1.87B	1.78B	1.30B	928.75M	694.09M	471.30M
Balance Sheet
Total Assets	0.00	32.39B	25.99B	21.85B	11.39B	9.90B
Cash, Cash Equivalents and Short-Term Investments	2.77B	2.71B	3.25B	2.53B	2.07B	1.38B
Total Debt	0.00	9.02B	8.10B	6.64B	1.65B	984.01M
Total Liabilities	-12.93B	19.46B	15.86B	13.36B	5.34B	4.19B
Stockholders Equity	12.93B	9.35B	7.90B	6.62B	5.44B	5.31B
Cash Flow
Free Cash Flow	0.00	1.10B	1.62B	537.43M	359.54M	551.99M
Operating Cash Flow	0.00	2.90B	2.65B	1.37B	874.48M	981.90M
Investing Cash Flow	0.00	-2.16B	-2.49B	-4.76B	-653.53M	-758.40M
Financing Cash Flow	0.00	-532.55M	-397.99M	3.65B	96.56M	-426.50M

Lumax Auto Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1654.10
• 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:LUMAXTECH, the sentiment is Negative. The current price of 1654.1 is above the 20-day moving average (MA) of 1649.26, above the 50-day MA of 1560.29, and above the 200-day MA of 1258.00, indicating a neutral trend. The MACD of 41.27 indicates Positive momentum. The RSI at 44.02 is Neutral, neither overbought nor oversold. The STOCH value of 42.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LUMAXTECH.

Lumax Auto Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LGBBROSLTD	76 Outperform	₹57.89B	16.13	―	1.07%	14.37%	12.68%
VARROC	69 Neutral	₹80.48B	-220.37	―	0.16%	7.38%	-73.62%
SHARDAMOTR	66 Neutral	₹51.61B	16.59	―	2.75%	6.96%	6.33%
LUMAXTECH	66 Neutral	₹113.92B	31.91	―	0.35%	36.70%	36.24%
THANGAMAYL	66 Neutral	₹119.53B	23.90	―	0.37%	35.04%	80.12%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Lumax Auto Technologies Limited Corporate Events

Lumax Auto Tech Moves Closer to Amalgamation With Ancillary Unit as NCLT Reserves Order

Lumax Auto Technologies Limited has notified stock exchanges that the National Company Law Tribunal’s New Delhi bench has allowed and reserved its second motion petition for the proposed amalgamation of Lumax Ancillary Limited with Lumax Auto Technologies. The scheme of arrangement, undertaken under Sections 230 to 232 of the Companies Act, 2013, aims to consolidate the transferor and transferee companies along with their shareholders and creditors, though the tribunal has yet to list a pronouncement date for the final order.

The company stated that the written order for the second motion has not yet been uploaded on the tribunal’s website and that it will update the exchanges once it becomes available. The progress indicates a key procedural step toward completing the amalgamation, which, once finalized, is expected to streamline the group structure and could have implications for corporate governance, operational efficiencies and transparency for stakeholders.

Lumax Auto Technologies Schedules Analyst and Investor Plant Visit in Pune

Lumax Auto Technologies has announced that PhillipCapital will host a plant visit for a group of analysts and institutional investors on February 27, 2026, at the Chakan, Pune plant of its wholly owned material subsidiary, IAC International Automotive India Private Limited. The company emphasized that the visit will be limited to discussions based on publicly available information, with no unpublished price-sensitive data to be shared, and noted that the schedule may change due to exigencies while also making the intimation available on its website for stakeholders’ reference.

Lumax Auto Tech GST Demand Cut, Firm Plans Further Appeal

Lumax Auto Technologies has received an Order-in-Appeal from the Joint Commissioner of State Tax, Pune Division-2, partly allowing its first appeal against a previous GST adjudication for the April 2019 to March 2020 period. The tax demand, including interest and penalty, has been cut sharply to Rs. 1.03 crore from Rs. 3.52 crore, easing the immediate liability on the company.

The demand had arisen over tax allegedly not paid, short paid, erroneously refunded, or input tax credit wrongly availed or utilized under the Maharashtra GST and IGST framework. Acting on the advice of its tax advisors, Lumax Auto Technologies plans to challenge the appellate order further before the appropriate tribunal, leaving the final financial impact contingent on the outcome of the next stage of litigation.

Lumax Auto Tech to Join Philip Capital Non-Deal Investor Roadshow in Mumbai

Lumax Auto Technologies Limited has notified the stock exchanges that its representatives will participate in a non-deal investors roadshow organized by Philip Capital in Mumbai on February 19, 2026, holding physical one-to-one meetings with analysts and institutional investors. The company emphasized that discussions during the roadshow will be limited to publicly available information, with no presentations or unpublished price sensitive information to be shared, underscoring compliance with disclosure regulations and aiming to strengthen engagement and transparency with the investor community.