Broker’s Call: Lumax Auto Tech (Buy)

The management raised its FY25-31 organic revenue CAGR target to 20 per cent, with additional upside from acquisitions, and reiterated its FY31 revenue aspiration of about ₹11,000 crore

Target: ₹2,715

CMP: ₹2,042.15

Lumax Auto Technologies (LATL) reported strong Q2FY27 performance, with Revenue/EBITDA/PAT rising 35 per cent/36 per cent/58 per cent year on year, driven by robust growth in the Advanced Plastics and Alternative Fuels segments. M&M and Bajaj Auto remained key customers, while both the PV and 2W/3W segments grew about 32 per cent and 36 per cent, respectively.

The management raised its FY25-31 organic revenue CAGR target to 20 per cent, with additional upside from acquisitions, and reiterated its FY31 revenue aspiration of about ₹11,000 crore.

The Mega Mechatronics (M1) facility at Manesar is slated for commissioning in Q3FY27, consolidating four JVs (Yokowo, Alps Alpine, Ituran and FAE) at a single location and enhancing operational efficiency. The Greenfuel Nashik plant for M&M is also expected to commence operations in Q3FY27.

In Q4FY27, the company plans to commission the IAC Chakan plant, which will execute new orders from M&M and the Greenfuel Manesar facility serving Maruti Suzuki. The board has approved the Mechatronics (M2) plant at Manesar, dedicated to electronic components including Body Control Modules for leading OEMs, with commissioning targeted in Q4FY28.

Factoring in the higher content per vehicle, increasing share of business with M&M and Maruti Suzuki and new product launches, we maintain Buy and continue to value the stock at 40x FY27E EPS resulting in target price of ₹2,715. Scope for further margin improvement remains through richer product mix and operating leverage.

Published on October 28, 2026