Target: ₹2,150
CMP: ₹1,604.45
For Q4 FY26, Lumax Auto Technologies reported robust quarterly revenue at ₹1,417 crore, 25 per cent year-on-year increase, reflecting sustained growth across key product segments, continued business momentum with OEMs and strong performance in the aftermarket portfolio. PAT grew 22 per cent in Q4FY26 to ₹98 crore, supported by continued focus on strengthening its standalone portfolio and improved utilisation of operational assets.
Lumax has a healthy order-book of around ₹1,450 crore, giving it strong revenue visibility for the next three years. The company expects to execute about 25 per cent of these orders in FY27, 54 per cent in FY28, and the remaining 21 per cent in FY29. Capex for FY27 is expected to be about ₹275-300 crore to support capacity expansion and new models.
Despite near-term geopolitical uncertainties and macroeconomic challenges, the company reiterated its medium-term revenue growth target of about 20 per cent CAGR through FY31. Demand momentum remains healthy entering Q1FY27, although margins may face temporary pressure from elevated raw material and energy costs. The company expects to continue outperforming industry growth, with select businesses growing at 2-3x the industry rate, driven by value-added products and increasing wallet share with key customers.
Therefore, we continue to recommend with Buy rating for the stock with a unchanged target price of ₹2,150.