This small-cap auto ancillary company is engaged in manufacturing and supplying automotive lamps, plastic Moulded parts, and frame chassis to two, three, and four-wheeler segments. The stock has jumped 4.08 percent after acquiring a 60% stake in Greenfuel Energy Solutions Private Limited with an investment of ₹153 crore
Stock price movement:
In Wednesday’s trading session, Lumax Auto Technologies Limited‘s share jumped by 4.08 percent from the previous close of Rs. 512.55. The stock opened at Rs. 534.75 and is currently trading at Rs. 533.45 with a high of Rs. 547.85 and a low of Rs. 524.60. The market capitalization now stands at approximately Rs. 3,635.87 crore.
What Happened:
Lumax Auto Technologies Limited (LATL) has successfully acquired a 60% stake in Greenfuel Energy Solutions Private Limited’s alternate fuels business for Rs. 153.09 crores through its wholly owned subsidiary, Lumax Resources Pvt Ltd.
The acquisition was funded via a mix of debt and internal accruals and marked Lumax Auto Technologies Limited’s entry into the rapidly growing green and alternate fuels sector, including CNG, hydrogen, and other applications.
Market Presence:
Lumax Auto Technologies Limited’s strategy has led to impressive growth in its 2-3-wheeler, 4-wheeler, and Commercial Vehicle (CV) segments. In the 4-wheeler segment, the company has increased its market share from 46% in FY22 to 62% in FY24, indicating Lumax’s ability to capitalize on market opportunities.
Strategic Focus:
Lumax Auto Technologies is focused on increasing content per vehicle for OEM partners and expanding its product offerings, particularly through EV-agnostic products via joint ventures and acquisitions.
The company is also enhancing its R&D in ADAS, electronics integration, HMIs, and software, with a total order book of ₹1,050 crores, 40% of which is linked to EV models.
Operationally, IAC India is seeing strong growth, with capacity utilization expected at 85% post-expansion. The mechatronics division aims to double revenue by FY 26, while management targets organic growth and an EBITDA margin increasing to 15%.
Also read….
Recent quarter results and ratios:
Lumax Auto Technologies Limited’s revenue has increased from Rs. 700 crore in Q2 FY24 to Rs. 842 crore in Q2 FY25, which has grown by 20.89 percent. The net profit of Lumax Auto Technologies Limited has also grown by 36.84 percent, from Rs. 38 crore in Q2 FY24 to Rs. 52 crore in Q2 FY25.
Lumax Auto Technologies Limited’s revenue and net profit have grown at a CAGR of 18.91 percent and 19.34 percent, respectively, over the last five years.
In terms of return ratios, the company’s ROCE and ROE should be 17.7 percent and 17.9 percent, respectively. The debt-to-equity ratio of the company is to be 0.92x. Lumax Auto Technologies Limited’s EPS is to be Rs. 22.8.
Shareholding pattern
In September 2024, Lumax Auto Technologies Limited had a majority stake held by the promoters at 55.98 percent, foreign institutional investors at 5.74 percent, domestic institutional investors at 16.17 percent, and the public at 22.10 percent.
Company Overview:
Lumax Auto Technologies Limited (LATL) was established in 1981 and is part of the D.K. Jain Group. The company is a leading manufacturer of automotive components, including gear shifters, interior solutions, lamps, and chassis.
The company operates 26 manufacturing plants across India and serves key customers like Bajaj Auto, Honda, Mahindra, and Toyota. The company also has partnerships with global players like Yokowo (Japan) and JOPP (Germany).
Written By – Nikhil Naik
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
Start Your Stock Market Journey Today!
Want to learn Stock Market trading and Investing? Make sure to check out exclusive Stock Market courses by FinGrad, the learning initiative by Trade Brains. You can enroll in FREE courses and webinars available on FinGrad today and get ahead in your trading career. Join now!!
