Check Before You Invest : Lumax Auto Technologies Ltd

Q: Which industry/sub-sector does Lumax Auto Technologies Ltd belong to?

Lumax Auto Technologies Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q: Is Lumax Auto Technologies Ltd a good quality company?

Lumax Auto Technologies Ltd is a good quality company, based on a consistently good multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Lumax Auto Technologies Ltd undervalued or overvalued?

Lumax Auto Technologies Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 143.61, Historic Median: 36.02. Price to Book, Current: 13.75, Historic Median: 4.27. Price to Sales, Current: 7.22, Historic Median: 2.02. EV to EBITDA, Current: 65.06, Historic Median: 19.90

Q: Is Lumax Auto Technologies Ltd a good buy now?

Lumax Auto Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd revenue growth is 10.6% for FY-2025, which is above its 5-year CAGR of 9.38%, indicating faster growth.

Q: Gross Profit margin of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.6% for FY-2025, which is in line with its 5-year median of 8.8%, indicating stable margins.

Q: Operating Profit Margin of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.47% for FY-2025, which is in line with its 5-year median of 8.12% indicating stable margins.

Q: Net Profit Margin of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Net Profit Margin is 5.01% for FY-2025, is in line with its 5-year median of 5.01%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 8.6, Historic Median: 8.8. Operating Profit Margin (%), Current: 8.47, Historic Median: 8.12. Net Profit Margin (%), Current: 5.01, Historic Median: 5.01

Q: Return on Asset of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Return on Asset is 5.28%, which is below its 5-year historical median of 6.53%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Return on capital employed is 12.24% for FY-2025, which is below its 5-year historical median of 14.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Lumax Auto Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Lumax Auto Technologies Ltd belong to?

Lumax Auto Technologies Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.

Q.2 Is Lumax Auto Technologies Ltd a good quality company?

Lumax Auto Technologies Ltd is a good quality company, based on a consistently good multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Lumax Auto Technologies Ltd undervalued or overvalued?

Lumax Auto Technologies Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	143.61	36.02
Price to Book	13.75	4.27
Price to Sales	7.22	2.02
EV to EBITDA	65.06	19.90

Q.4 Is Lumax Auto Technologies Ltd a good buy now?

Lumax Auto Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd revenue growth is 10.6% for FY-2025, which is above its 5-year CAGR of 9.38%, indicating faster growth.

Q.2 Gross Profit margin of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.6% for FY-2025, which is in line with its 5-year median of 8.8%, indicating stable margins.

Q.3 Operating Profit Margin of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.47% for FY-2025, which is in line with its 5-year median of 8.12% indicating stable margins.

Q.4 Net Profit Margin of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Net Profit Margin is 5.01% for FY-2025, is in line with its 5-year median of 5.01%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	8.6	8.8
Operating Profit Margin (%)	8.47	8.12
Net Profit Margin (%)	5.01	5.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Return on Asset is 5.28%, which is below its 5-year historical median of 6.53%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Return on capital employed is 12.24% for FY-2025, which is below its 5-year historical median of 14.28%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Return on equity is 10.65% for FY-2025, which is below its 5-year historical median of 11.29%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Cash conversion cycle is 21 days, in line with its 5-year historical median of 21 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.08	1.24
ROE (%)	10.65	11.29
ROCE (%)	12.24	14.28
Cash Conversion Cycle	21 days	21 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Debt-to-Equity ratio is 0.54, which is above the industry average of 0.40, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Lumax Auto Technologies Ltd?

Lumax Auto Technologies Ltd Debt to cash flow from operations is 3.45, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Lumax Auto Technologies Ltd?

Q.1 Promoter shareholding and pledge status of Lumax Auto Technologies Ltd?

Promoters hold 55.98% of the Lumax Auto Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Lumax Auto Technologies Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Lumax Auto Technologies Ltd vs industry peers?

Lumax Auto Technologies Ltd revenue CAGR is 9.38%, compared to the industry median CAGR of 11.82%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	10.6	11.8
Gross Profit Growth (%)	-12.2	16.3
Operating Profit Growth (%)	9.7	14.9
Net Profit Growth (%)	-20.4	20.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.08	1.23
ROE (%)	10.65	11.57
ROCE (%)	12.24	13.36
Cash Conversion Cycle (days)	21.27	47

Valuation & price assessment

Q.1 Stock return of Lumax Auto Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 38.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	38.2%	65.9%	79%	206.2%

Q.2 Valuation ratios of Lumax Auto Technologies Ltd vs historical?

The current P/E ratio of 143.61 is higher than its historical median of 36.02, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	143.61	36.02	28.71
Price to Book	13.75	4.27	2.99
Price to Sales	7.22	2.02	1.35
EV to EBITDA	65.06	19.90	11.85

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Check Before You Invest : Lumax Auto Technologies Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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