Target: ₹1,860
Current Market Price (CMP): ₹1,396.80
Lumax Auto Technologies, founded in 1981 and part of the DK Jain Group, is a leading manufacturer and supplier of automotive components for two-, three-, and four-wheelers. The company has adopted a strategic approach that involves partnering with established global manufacturers already supplying original equipment manufacturers (OEMs) in India. This strategy enables Lumax to leverage these partnerships, develop, and produce international-quality products within India, thus catering to local OEMs at competitive costs while enhancing its profit margins.
Lumax has fostered numerous successful alliances and continues to collaborate with several international partners, driving growth and presenting substantial opportunities. Analysts project further collaborations with global partners, which are expected to boost earnings and lead to consistent growth. Earnings are anticipated to outgrow revenue and EBITDA, primarily due to the expansion of high-margin product lines, the acquisition of Greenfuel, the consolidation of the remaining stake in IAC India, a rebound in emerging subsidiaries, and robust OEM demand following the recent reduction in GST rates.
To establish a target price of ₹1,860, a 35x multiple has been applied to the anticipated earnings per share (EPS) for September 2027. Given the company’s turnaround and an impressive earnings compound annual growth rate (CAGR) of 40% over the past four years, paired with improved EBITDA margins (projected at 13.4% for Q2FY26 compared to 12.8% for FY25 and 10% for FY22), Lumax is considered deserving of a higher valuation multiple. The company aims for a 20% CAGR in topline revenues and a 20% EBITDA margin over the next six to seven years.
Published on November 19, 2025
