Lumax Auto Technologies rallies 25% in 3 weeks, hits new high; here's why

Thus far in the calendar year 2025, Lumax Auto Technologies stock has zoomed 90 per cent, as compared to 2 per cent rise in the BSE Sensex.

Lumax Auto Technologies share price today

 

Shares of Lumax Auto Technologies hit a new high of ₹1,247.05, surging 6 per cent on the BSE in Monday's intra-day trade on healthy business outlook. The stock price of the smallcap auto components company surpassed its previous high of ₹1,231.90 touched on August 6, 2025. In the past three weeks, the stock has rallied 25 per cent.

 

Thus far in the calendar year 2025, Lumax Auto has zoomed 90 per cent, as compared to 2 per cent rise in the BSE Sensex. It has bounced back 176 per cent from its 52-week low of ₹452.55 touched on April 7, 2025. 

What's driving this smallcap auto components stock price?

 

Lumax Auto has a robust order book of ₹1,500 crore with strong visibility across next 3 fiscal years. Of this order book, approximately just 8 per cent is projected to be materialized in the current fiscal year, almost 40 per cent in FY27, 40 per cent in FY28 and the remaining 10 per cent to 12 per cent in FY29. The order book reflects healthy traction across all product verticals with advanced plastics contributing the largest share, followed by mechatronics, alternate fuels and structures and control systems product verticals.

 

The automotive industry in the April to June 2025 quarter (Q1FY26) witnessed a mixed performance with demand flat across most segments. Within passenger vehicles, the strong growth of Mahindra & Mahindra, driven by the continued success of its utility vehicle (UV) portfolio and steady tractor performance provided a positive tailwind for the Lumax Auto business.

 

Premiumization across product categories contributed meaningfully, improving the revenue mix for both original equipment manufacturers (OEMs) and suppliers. Additionally, diversification across passenger vehicles, 2- wheelers, 3-wheelers and the commercial vehicle segments helped cushion the impact of a muted domestic environment.

 

The broader macroeconomic environment has also shown encouraging signs of improvement with inflation under control, GDP growth resilient and rural sentiment on the rise, aided by a strong monsoon. Urban consumption is expected to strengthen in the coming quarters, supported by personal income tax benefits and improved liquidity conditions, Lumax Auto said in its Q1FY26 earnings conference call.

 

The combination of improving rural demand and supportive policy measures provides a constructive backdrop for the industry, particularly as we head into the festive season and expect a gradual revival in consumer sentiment across both urban and rural markets. Moreover, industry leaders believe the recently announced US tariffs will have minimal impact on India's 7 billion auto component exports to the US, the company said.

 

Meanwhile, the expanding middle class and rapid urbanization are fueling a surge in automobile demand. This, in turn, is propelling growth in the auto component sector. The growth of India's middle class is leading to higher vehicle ownership, driven by rising incomes, better education, and employment opportunities. These factors boost disposable income and encourage spending on personal transportation, Lumax Auto said in its FY25 annual report.

 

India is being considered a potential global automotive supply chain alternative under the 'China+1' strategy. This strategy encourages companies to diversify manufacturing beyond China. Additionally, India’s automotive industry is gaining importance in global supply chains due to strategic localization, economic growth, endurance, and targeted investments in infrastructure and technology.