Lumax Auto Tech. (LUMAXTECH)

FairStock Score: 59/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear both hats: Buffett's love of durable returns and Graham's demand for margin of safety. Lumax Auto Tech, a ₹13,807 Cr auto-components maker, is a fast grower on the numbers. Five-year revenue CAGR is 26.09%, reported sales growth is 149.17%, and profit growth is 82.82%. Latest quarter sales were ₹1,271 Cr with net profit ₹108 Cr, implying roughly 8.5% net margin. ROCE of 19.02% and Piotroski F-Score 7/9 suggest decent operating discipline and improving fundamentals. Promoter holding at 55.98% gives meaningful skin in the game. But the price asks a lot. At ₹2,025.70, P/E is 42.56 and P/B is 11.41; book value is ₹177.56, so you pay a steep multiple for that book. ROE is only 13.48%, and debt/equity of 0.83 is not pristine. Free cash flow is ₹74 Cr, which looks thin relative to market cap and latest quarterly profit, while dividend yield is just 0.27%. The PEG ratio of 0.66 and FairStock Score of 59/100 (STEADY) argue that growth is reasonably priced relative to earnings, but the 52-week range of ₹1,120–₹2,187.75 shows the stock can swing hard. Moat? Not obvious from these figures; auto component suppliers can be sticky, but ROCE below 20% and ROE at 13.48% do not scream wide pricing power. My verdict: a fast grower with respectable returns, but not a Graham bargain. I would wait for a wider margin of safety or clearer evidence of durable competitive advantage. Monitor ROCE, FCF conversion, debt/equity, and whether sales and profit growth sustain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer