Broker’s call: Lumax Ind (Buy)

Target: ₹3,274

CMP: ₹4,565

Increasing demand of LED lighting helped Lumax report a robust topline growth of 24.3 per cent to ₹923.37 crore in Q4-FY25 as against ₹742.69 crore in Q4-FY24. Manufacturing revenue (excluding moulds) stood at ₹875.5 crore (₹718.3 crore), a growth of about 22 per cent.

Moulds revenue massively increased to ₹47.9 crore in FY25 (₹24.4 crore), a growth of 96 per cent on the back of new model launches.

The stock currently trades at 18.0x FY26e EPS of ₹198.78 and 13.3x FY27e EPS of ₹268.51. Consumer sentiments in the passenger vehicle segment (revenue contribution of 66 per cent in FY25) remains barely robust amidst geo-political risks and imposition of tariffs by the US.

However, favourable monsoons and reduction in financing costs might come to the rescue, as sales of two-wheelers have started to rebound. Its ability to gain market share through product innovation and greater customer engagement may catalyse business growth; post-tax earnings are estimated to grow at a CAGR of 34 per cent during the two years ending FY27. We assign ‘buy’ rating on the stock with a revised target price of ₹4,565 (previous target: ₹2,886) based on 17.0x FY27e earnings.

Published on July 17, 2025