Lumax hits a new high

Lumax Auto Technologies is currently the top gainer on the BSE, rising 15.84% to Rs. 2,016.50. The stock touched a fresh 52-week high of Rs. 2,031.90, against its previous close of Rs. 1,740.80. The company’s market cap stands at around Rs. 13,754 crore. Market depth shows sell quantity at 22,285 against buy quantity of 11,775, suggesting some profit booking after the sharp rally.

Trigger

• Strong Q1 FY27 performance.
• Consolidated revenue grew 33% YoY to Rs. 1,364 crore.
• EBITDA rose 51% YoY to Rs. 205 crore.
• EBITDA margin expanded to 15.1%, up from 13.2% YoY.
• PBT before exceptional item jumped 78% YoY to Rs. 132 crore.
• PAT before minority interest rose 83% YoY to Rs. 99 crore.
• EPS doubled, rising 109% YoY to Rs. 12.7.
• Growth was supported by technology-led expansion, portfolio diversification and operational excellence.

The key positive is that profit growth has outpaced revenue growth, indicating operating leverage, better cost control and a richer product mix. Lumax also continues to benefit from higher wallet share with OEMs and premiumisation-led value enhancement, especially in advanced plastics, structures and control systems, mechatronics and alternate fuel components.

The operational mix also looks more diversified. Passenger vehicles contributed 52% of Q1 FY27 business, while 2/3 wheelers increased to 27% from 21% a year ago. New launches during the quarter included body control modules and ferrule-less tube fittings for Maruti Suzuki’s Ertiga, moulded parts for TVS and HMSI, LED head lamps for Bajaj Platina and swing arm for Bajaj Pulsar.

After today’s 52-week high, the stock is trading at a rich PE of 86 times standalone and 36 times consolidated earnings, with a PB of over 20 times.