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Hidden Gem - Lumax Auto Technologies (CMP: ₹ 1,130; Rating: BUY; Target Price: ₹ 1,285)

ICICIdirect Research 31 Oct 2025 DISCLAIMER

Lumax Auto Technologies (LAT) is a leading auto ancillary player with diversified portfolio. Its key products include: integrated plastic modules which form bulk 51% of its revenues, followed by structures & control systems at 18%, After-market: 10%, among others.
It counts M&M and Bajaj Auto as its top OEM clients contributing ~44% of its sales with other major clients being Maruti at ~8% of sales, Tata Motors at ~7% of sales among others.  
Passenger Vehicle (PV) domain contributed the maximum ~55% of sales and offers significant growth potential given India’s low car penetration of ~33 cars per 1000 people, compared to China at ~200, US and Europe at ~500+ levels.
Furthermore, the acquisition of Green Fuel marks LATL entry into the fast-growing alternate fuel space (CNG kit components), which is expected to generate revenues of ~₹300–350 crore in FY26 at superior margins (~18%) vs. base business (~13%).
With ~40% of its ₹1,500 crore order book linked to EV platforms and rising potential content per vehicle (₹70,000+), it is well-positioned to benefit from both volume growth and premiumization trends across top OEMs.
With robust order book driving high double-digit sales growth, gradual improvement in margin profile and strong return ratios (~20%), we have a positive view on Lumax Auto Technologies.
We expect sales, PAT at LAT to grow at CAGR of 16.3%, 28%, respectively, over FY25-27E. Margins seen at 13-13.5% levels
We have a BUY rating on the stock with a target price of ₹ 1,285; valuing the company at 30x P/E on FY27E.

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