Portfolio Check: This auto ancillary stock is up 76% from April low

Lumax Auto Technologies share price today

 

Lumax Auto Technologies shares hit a new high of ₹795 today, surging 15 per cent on the BSE in Friday's intraday trade, in an otherwise weak market after the company reported better-than-expected earnings for the quarter ended March 2025 (Q4FY25).

 

With today's rally, the stock price of the auto ancillary company has zoomed 76 per cent from its previous month low of ₹452.55, which it touched on April 7, 2025.

 

At 10:33 AM, Lumax Auto Technologies shares were quoting 13 per cent higher at ₹785.40 as compared to 0.25 per cent decline in the BSE Sensex. The average trading volume on the counter jumped five-fold, with a combined 2.3 million equity shares having changed hands on the NSE and BSE till the time of writing this report.

 

Lumax Auto Technologies Q4 & FY25 results

 

Lumax Auto Technologies, a leading automotive component manufacturer, announced its audited financial results for the fourth quarter and full year ended March 31, 2025 after market hours on Thursday. Lumax Auto showcased a strong operational performance and strategic expansion through inorganic growth initiatives. The company recorded its highest-ever annual revenue and earnings before interest, tax, depreciation and amortisation (Ebitda), and surpassed the ₹1,000-crore mark in quarterly revenue for the first time.

 

Lumax Auto Technologies posted robust Q4FY25 results. The company's consolidated revenue reached ₹1,133 crore, marking a 50 per cent year-on-year (Y-o-Y) growth from ₹757 crore in Q4FY24. Profit before tax jumped 74 per cent Y-o-Y to ₹108 crore from ₹62 crore in the year-ago quarter. Ebitda margin improved to 14.6 per cent from 14.5 per cent.   

Strategic Inorganic Growth Initiatives

Lumax Auto Technologies accelerated its inorganic growth strategy through strategic acquisitions and partnerships. During the financial year, the company invested ₹48 crore in Optionally Convertible Redeemable Debentures, in its wholly-owned subsidiary Lumax Resources Private Limited, which subsequently acquired a 60 per cent controlling stake in Greenfuel Energy Solutions Private Limited for ₹153 crore, marking the company's strategic entry into the alternative fuels business.

 

Post the year-end, the Board approved the acquisition of the remaining 25 per cent stake in IAC International Automotive India Private Limited (IAC India) for ₹221 crore, making it a wholly-owned subsidiary and strengthening the company's market position in automotive components. IAC India has recently inaugurated two state-of-the-art manufacturing facilities at Chakan, Pune, for the BEV models of Mahindra & Mahindra – BE6 & XEV9e.

 

Lumax Auto Outlook

 

With a robust balance sheet, strategic acquisitions, and expanding product portfolio, Lumax Auto Technologies said the company is well-positioned to capitalise on the growing automotive market and emerging mobility solutions.

 

ICICI Securities on Lumax Auto Technologies

 

Q4FY25 performance of the company was above the brokerage's expectations on all fronts. Notably, Passenger Cars segment contribution increased from 48 per cent in FY24 to 53 per cent in FY25. Also, the majority of segments such as Advance Plastics, and mechatronics have witnessed more than 50 per cent YoY growth in this quarter. The recently acquired alternative fuel business recorded revenue of ₹ 91 crore. Also, recently the company acquired the remaining 25 per cent stake in IAC India from its existing shareholder for ₹ 221 crore.

 

"With a healthy order book led double digit growth prospects, stable margin profile, earnings accretive value conscious acquisitions and impressive return ratios matrix, we maintain a positive view on the company. The stock remains our top pick in the auto ancillary space,"  ICICI Securities said.

 

About Lumax Auto Technologies

 

Lumax Auto Technologies through its subsidiaries has been a manufacturer of wide range of products (Advance Plastics, 2/3-wheeler Lighting, Chassis, Gear Shifter, Shift Towers, Emission Systems, Seat Frames, Oxygen Sensors, On-board antennas Electric devices & components, Wiring Harness, Vehicle Interior Components & CNG delivery systems).

 

The company is market leaders in Design, Testing and Manufacturing of Gear Shifters & Interior Solutions in India. The Company has a robust pan-India distribution network with 30 manufacturing plants across India in all major Auto clusters.

 

The company's key customers include Mahindra & Mahindra, Bajaj Auto, Maruti Suzuki, Honda Motorcycles and Scooters, Tata Motors, Daimler India and Volkswagen.