Buy Lumax Auto Technologies; target of Rs 552: Sharekhan

Sharekhan's research report on Lumax Auto Technologies

EBITDA missed the mark but matched PAT estimates on lower tax provisioning and higher other income. LATL has started supplies to Mahindra’s new 3X0 model further IACI has added Tata Motors as a new customer. Stock trades at P/E multiple of 14.8x and EV/EBITDA multiple of 6.5x its FY26 estimates.

Outlook

We maintain our Buy rating on the stock with revised PT of Rs. 552 on expectation of an improvement in product mix, rise in content per vehicle and expansion of growth opportunity on consolidation of IACI’s business.