Lumax Industries (LUMAXIND)
Fast GrowerFairStock Score: 43/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹5,796.5 |
| Market Cap | ₹5,418.41 Cr |
| P/E Ratio | 28.9 |
| ROCE | 16.39% |
| ROE | 31.65% |
| Dividend Yield | 0.95% |
| Profit Growth | 41.2% |
| Debt/Equity | 1.06 |
| Sales Growth | 32.6% |
| Promoter Holding | 75% |
| 52-Week Range | ₹4,061 — ₹6,934.5 |
| Sector | Auto Components |
| Book Value | ₹981.48 |
Strengths
- ROE of 31.65% shows strong shareholder return generation
- Sales growth of 18.67% and profit growth of 75.36% indicate rapid expansion
- Promoter holding of 75% aligns management interests with minority shareholders
- Piotroski F-Score of 7/9 suggests reasonably sound financial health
- PEG ratio of 0.69 implies growth is not fully priced in
Concerns
- P/E of 32.39 and P/B of 8.88 leave little margin of safety versus book value of ₹587.11
- Debt-to-equity of 1.21 and ROCE of 16.39% suggest ROE is partly leverage-driven
- Dividend yield of only 0.58% gives negligible income while waiting
- FairStock Score of 42/100 flags a mixed risk-reward picture
AI Analysis
When I look at Lumax Industries, I first ask: is this a wonderful business at a fair price, or a fair business at a wonderful price? The numbers tell me this is a fast-growing auto component maker with real strengths and some serious caution flags. A return on equity of 31.65% is genuinely impressive, and sales growth of 18.67% with profit growth of 75.36% shows powerful momentum. The promoter holding of 75% also reassures me that the people running the business have their own money at stake. But I must be careful: equity returns look flattered by leverage. Debt-to-equity is 1.21, and the return on capital employed is only 16.39%, so a good part of that ROE is borrowed muscle. Graham would insist on a margin of safety, and at ₹5,215.70 with a P/E of 32.39 and P/B of 8.88, I don't see it. Book value of ₹587.11 versus that price means the downside protection is thin. The dividend yield of 0.58% offers little while I wait. The Piotroski score of 7/9 and PEG ratio of 0.69 suggest healthy fundamentals and reasonable growth valuation, but the FairStock Score of 42/100 correctly labels this a mixed picture. The latest quarter—sales ₹1,053 Cr and net profit ₹47 Cr—confirms the engine is running, but auto components can be cyclical and technology-driven. I'd call this a fast grower, not a classic Graham bargain. It could compound well if growth continues and leverage stays manageable, but I would want a better price and clearer moat before acting.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer