Lumax Auto zooms 147% in CY2025; beats SmallCap index for 4th straight year

Lumax Auto is well positioned to benefit from both volume growth and premiumization trends across top OEMs, believe analysts

Lumax Auto Technologies share price today

 

Lumax Auto Technologies shares hit a new high of ₹1,597.20 on the BSE today, surging 8 per cent in Monday's intraday trade, in an otherwise weak market. The stock price of the smallcap auto components company surpassed its previous high of ₹ 1,580.95, which it hit on December 1, 2025.

 

At 10:28 AM, Lumax Auto was quoting 7 per cent higher at ₹1,579.50 as compared to a 0.3-per cent decline in the BSE Sensex index.

 

Lumax Auto outperforms Smallcap index for the fourth straight year

 

With this year's rally, Lumax Auto stock is set to outperform the BSE SmallCap index for a fourth straight calendar year.

 

 

Thus far in calendar year 2025 (CY25), the stock price of Lumax Auto has more-than-doubled, zooming 147 per cent, as against an 8.1 per cent decline in the BSE SmallCap index.

 

In CY20, the stock had rallied 54 per cent, as compared to a 2 per cent fall recorded by the smallcap index. In CY23 and CY24, Lumax Auto had soared 61 per cent and 67 per cent, respectively. By comparison, the BSE SmallCap index had risen 48 per cent and 29 per cent, during the respective years.  CATCH STOCK MARKET LIVE UPDATES TODAY 

What's driving the auto components' stock?

 

India's macroeconomic environment in the financial year 2025-26 (FY26) remains supportive, aided by a series of fiscal and monetary measures aimed at sustaining growth momentum. The recent goods and services tax (GST) rate rationalisation in September 2025 has provided a very strong demand stimulus for the automobile industry, lowering effective tax rates across multiple segments and improving consumer affordability, particularly in discretionary categories.

 

Additionally, the Reserve Bank of India's cumulative policy rate cuts since early 2025 have further eased financing costs and improved credit availability, benefiting both retail buyers and the broader manufacturing ecosystem. Also, the income tax relief announced in FY26 has provided an incremental boost to disposable income, complementing the broader policy environment that continues to favor growth in the Indian auto sector,  Lumax Auto had said post its Q2 earnings conference call.

 

Overall, the sector, it said, remains on a firm footing with demand expected to sustain through the festive and post-harvest period, supported by favorable policy measures and improving customer confidence.

 

"The company has a robust order book of ₹1,357 crore with a strong visibility over the next three fiscal years. Of this order book, approximately just 7 per cent is projected to be materialised in the current fiscal year i.e. FY26, and almost 35 per cent in FY27, 48 per cent in FY28, and the remaining 10 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 vertical," it said.

 

Brokerages on Lumax Auto stock outlook

 

With 40 per cent of its ₹1,360-crore order book linked to electric vehicle (EV) platforms, coupled with rising potential content per vehicle (₹70K+), Lumax Auto is well positioned to benefit from both volume growth and premiumisation trends across top OEMs. Segment-specific growth levers such as premiumisation in interiors and aftermarket expansion (targeting double digit CAGR) positions Lumax Auto to deliver growth ahead of industry, analysts at ICICI Securities had said in a Q2 result update report.

 

Lumax Auto, it added, continues to be guided by its "Northstar" strategic framework with long-term goals: 20 per cent plus revenue CAGR reaching ₹11,000 crore by FY31E, 20 per cent plus ROCE, moving toward 20 per cent Ebitda margins, and 20 per cent of revenue from clean future mobility.

 

"FY26 marks the start of a new six-year growth blueprint called 'BRIDGE' (Bold Roadmap Integrating Diverse Growth Engines), which aims to transition it from a Tier-1 supplier to a Tier-0.5 systems integrator," the brokerage firm said.

 

With a healthy order book, marquee clientele, and strong execution along with accelerating participation in future mobility domains and ramp up of JVs, ICICI Securities analysts have maintained a 'BUY' rating on Lumax Auto Technologies stock. However, the stock has achieved the brokerage firm's target price of ₹1,575.

 

SBICAP Securities, however, has a higher share price target of ₹1,720 for Lumax Auto share. It valued the stock at a P/E of 32.4x/21.1x of its FY26E/FY27E EPS at the end of Q2FY26, and believed it should command a higher valuation given the strong earnings CAGR, uptrend in the domestic 2W and PV industry, rising content per vehicle, and increasing share of business with leading OEMs and new product development.

 

"We value the stock at 25x FY27E EPS of ₹68.7, raising our target price to ₹1,720. Any further acquisition/ onboarding of new client/new product launch will act as an additional tailwind and is likely to further rerate the stock," it had said in its Q2 review report.

   

=======================

Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.