Lumax Auto, Subros zoom over 100% from 3-mth lows; what's behind the rally?

Shares of Lumax Auto Technologies (₹1,113.90) and Subros (₹1,084) hit their respective new highs, and rallied up to 10% on the BSE in Tuesday's intra-day trade in an otherwise weak market.

Share price movement of Lumax Auto, Subros today

 

Shares of Lumax Auto Technologies (₹1,113.90) and Subros (₹1,084) hit their respective new highs, as these stocks rallied up to 10 per cent on the BSE in Tuesday’s intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.22 per cent at 81,618 at 11:30 AM.

 

These two stocks have seen their share prices more-than-double from their respective 3-month lows. Among individual stocks, Lumax Auto Technologies has zoomed 146 per cent from a level of ₹452.55 on April 7, 2025.  

 

Share price of Subros surged 116 per cent from ₹501.55 on March 17, 2025. In the past two trading days, the stock has zoomed 30 per cent from a level of ₹831 on Friday, June 13, 2025.  Catch Stock Market Latest Updates Today LIVE

 

What’s driving auto related stocks?

 

Subros is the leading manufacturer of thermal products for automotive applications in India, in technical collaboration with Denso Corporation, Japan. The company is engaged primarily in the business of manufacturing and sale of thermal products for automotive and home air-conditioning original equipment manufacturers (OEMs).

 

Subros medium-term growth prospects remains healthy, given its strong market position in the passenger vehicle (PV) industry and continued demand in the industry. Further, the notification from the Government of India mandating air-conditioned (AC) fitted cabins in N2 and N3 trucks (both segments combined cover trucks having gross vehicle weight exceeding 3.5 tonnes), manufactured after October 2025, is expected to generate incremental revenue prospects for the company.

 

The company is expected to continue its growth momentum on account of new product development for various models of PVs, buses, trucks and the railways segment.

 

While the company has significantly muted its sales in the home AC segment due to low segment margins amid inflationary pressure in the fixed price nature of contracts, an increase in the contribution from the other business segments, such as commercial vehicle (CVs) and Indian Railways is expected to support its earnings growth prospects, according to ICRA. 

 

Meanwhile, in the past three weeks, the stock price of Lumax Auto Technologies, a leading automotive component manufacturer, has zoomed 63 per cent after the company showcased strong operational performance and strategic expansion through inorganic growth initiatives through its March quarter earnings. 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.

 

The performance was driven by strong demand across all segments and deepening engagement with OEM partners. Improvement in Ebitda growth highlights the strength of the company’s operating model, supported by improved efficiencies, prudent cost management and continued focus on value-added offerings, the management said.

 

With a well-diversified product portfolio and deep integration with leading OEM platforms, the management said the company remains strongly positioned to capitalize on evolving opportunities across segments in a structurally improving macro environment.

 

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

 

Given the healthy order book led by double digit growth prospects, stable margin profile, earnings accretive value conscious acquisitions and impressive return ratios matrix, analysts maintain their positive view on the company.