Lumax Auto up 4% as Phillip Capital initiates with 'Buy,' eyes 36% upside

Lumax Auto Technologies share price today: Lumax Auto Technologies (Lumax Auto) shares were in demand on Wednesday, November 19, 2025, after the domestic brokerage Phillip Capital initiated coverage on the stock with a bullish outlook. 

 

The counter rose as much as 4.40 per cent to hit an intraday high of ₹1,424.30 before trading at 3.62 per cent higher at ₹1,413.70 at around 11:50 AM. In comparison, the BSE Sensex was up just 0.31 per cent at 84,937.50.

 

The rally was sparked by Phillip Capital’s ‘Buy’ recommendation on Lumax Auto Technologies Ltd, along with a target price of ₹1,860, implying a 36 per cent upside.

 

The brokerage highlighted strong structural drivers such as global partnerships, consolidation of key subsidiaries, and rising demand across product segments as reasons for its optimism

Strategic partnerships driving growth

 

Founded in 1981 and part of the DK Jain Group, Lumax Auto Technologies has built its business model around forging alliances with global automotive component manufacturers. 

 

These collaborations, Phillip Capital noted, allow the company to gain access to advanced engineering expertise, specialised technologies and global sourcing capabilities. 

 

In turn, Lumax Auto is able to localise world-class products for Indian original equipment manufacturers (OEMs) at competitive costs while simultaneously improving margins. Many of these partnerships have matured successfully, giving the company a broad and technologically sophisticated product portfolio that continues to win business.

 

One major boost to Lumax’s growth matrix is IAC India, now a wholly-owned subsidiary. This acquisition signals Lumax Auto’s commitment to scaling its premium car-interior solutions business.   ALSO READ | LG Electronics gains 3%; Morgan Stanley, Dolat Capital initiate coverage 

According to the brokerage, operational synergies such as joint sourcing and the scaling up of key clients are expected to drive margin expansion. Subsidiaries like Lumax Mannoh also present major potential. The increased penetration of high-margin automatic gear shifters, supported by export opportunities through its joint venture (JV) partner, keeps the outlook promising.

 

Elsewhere, Lumax Cornaglia is positioned for future growth on the back of strong pipelines from key customers like Tata Motors. The company has also ventured into the rooftop systems business using roto-moulding technology, creating an additional line of revenues. Its Greenfuel acquisition is another strategic move that allows LMAX to tap into the alternate-fuel ecosystem, an area supported by a healthy order book and rising industry demand.

 

The standalone business is also expected to contribute meaningfully. Higher focus on the aftermarket segment, increased contribution from LED lighting systems and growth in Bajaj Auto’s exports are seen supporting volumes. Additionally, new product wins from Chetak, KTM and Triumph should lift visibility. Emerging subsidiaries, particularly those engaged in sensors, telematics and antennas, are expected to scale up as order books strengthen. 

 

That said, Phillip Capital analysts noted that strategic partnerships will help accelerate the development pipeline in these technology-led verticals.  ALSO READ | Titagarh Rail shares slip as analysts trim estimates after Q2 results

Lumax Auto: Financial outlook, valuations

 

Analysts at Phillip Capital expect Lumax Auto Technologies’ financial performance to remain robust over the next several years. The brokerage forecasts strong contributions from IAC India’s higher margins, growth in automatic gear shifters, a rebound in activity from key clients, and strengthening performance from emerging subsidiaries. 

 

The aftermarket segment should remain a steady contributor, while the GST-led improvement in overall auto demand is likely to provide a cyclical boost, analysts said. Expansion into the alternate-fuel segment through Greenfuel is expected to further diversify revenues.

 

The brokerage, thus, estimates adjusted earnings per share (EPS) growth of around 32 per cent over FY25-28, with revenue, Ebitda and profit after tax (PAT) CAGR at 17 per cent, 21 per cent and 32 per cent respectively. Earnings growth, it said, will outpace revenue and Ebitda growth, driven by a rising mix of high-margin products and the positive impact of consolidation moves such as the IAC India transaction.

 

Phillip Capital assigns a 35x multiple to its September 2027 estimated EPS of around ₹53, arriving at a target price of ₹1,860. It believes Lumax warrants higher valuation multiples, given its successful turnaround over the past four years, during which earnings delivered a CAGR of roughly 40 per cent and Ebitda margins expanded from 10 per cent in FY22 to 12.8 per cent in FY25 and 13.4 per cent in Q2FY26.

 

Forward-looking commentary also remains upbeat. The company aims for a topline CAGR of 20 per cent and an Ebitda margin of 20 per cent over the next six to seven years, backed by strong OEM demand, favourable regulatory shifts, and an expanding portfolio of high-value components.