🧠 At a Glance
Lumax Auto Tech has quietly become the dominant player in India’s auto component space with 80% market share in gear shifters and strong global tie-ups. Over the past 5 years, profits have grown 25% CAGR, ROE has crossed 20%, and the stock has done a Fast & Furious 4x rally. But is it still in gear or near the curve?
🏭 1. Business Breakdown: What Does Lumax Actually Do?
- 🔧 Products:
- Gear shifters (mechanical + electronic)
- Plastic molded parts
- Frame chassis
- Integrated interiors, lighting components
- 🚘 Customers: Major OEMs across 2W, 3W, and 4W — think Maruti, Honda, Tata, Mahindra, even global EV entrants.
- 🌍 Global Partnerships:
- Yokowo
- (Japan)
- JOPP (Germany)
- IAI (Japan)
- It’s not just Tier 1… it’s Tier 1 with global backing.
📊 2. Financials: 5-Year Journey from “Supplier” to “Star Performer”
| ₹ in Crores | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 1,108 | 1,508 | 1,847 | 2,822 | 3,637 |
| EBITDA | 98 | 151 | 201 | 369 | 465 |
| Net Profit | 51 | 82 | 111 | 167 | 229 |
| ROCE (%) | 13% | 17% | 15% | 18% | 19% |
| ROE (%) | 7% | 10% | 13% | 18% | 21% |
| EPS (₹) | 6.91 | 10.18 | 13.63 | 19.10 | 26.08 |
| Operating Margins | 9% | 10% | 11% | 13% | 13% |
| Borrowings (₹ Cr) | 98 | 165 | 664 | 810 | 902 |
⚠️ Debt Watch: Borrowings jumped 9x between FY22–25. But so did profits. Leverage is being used well, not wastefully.
📈 3. CAGR Snapshot
| Metric | 3Y CAGR | 5Y CAGR | TTM |
|---|---|---|---|
| Revenue Growth | 34% | 26% | 29% |
| PAT Growth | 36% | 25% | 37% |
| Stock Price CAGR | 88% | 71% | 108% |
| ROE Expansion | 🔼 7% → 21% |
🔁 This is what compounding with operating leverage looks like.
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