Target: ₹857
CMP: ₹556.95
Lumax Auto Technologies’ (LATL) consolidated revenue/EBITDA/PAT grew 24/11/25 per cent y-o-y to ₹906 crore/₹118 crore/₹45 crore respectively in Q3-FY25. Revenue growth was driven by steady 10 per cent growth in the standalone business of metallic frames and lighting alongwith ramp up in the JVs/subsidiaries. The advanced plastics segment revenue grew 20 per cent y-o-y to ₹513 crore, contributing 57 per cent to the consolidated revenue.
Mechatronics revenue was up 75 per cent y-o-y led by start of production of new orders in the joint ventures. After market segment continued to be weak with tight liquidity and pricing pressure impacting the realisations. The company is currently sitting on an order book of ₹1,350 crore which consists of 90 per cent new orders which will drive revenue growth ahead along with the existing business.
LATL is expected to outperform the industry growth rate led by scale up of acquisitions and ramp up of JVs. The aftermarket business, dormant for last couple of quarters is expected to start recovering from 4QFY25. This along with the consolidation of greenfuel energy should drive margin improvement from FY26. We have also incorporated the estimates for FY27. We continue to value the stock at 20x FY26E EPS of ₹45.2 and maintain our TP of ₹857 in 15-18 months.
