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Lumax Industries Ltd

NSE: LUMAXIND BSE: 517206

5364

(2.03%)

Fri, 22 May 2026, 05:45 pm

Lumax Industries Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (3x coverage).
  • Lumax Industries's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • No need to calculate the sustainability of Lumax Industries's dividends in 3 years as they are not expected to pay a notable one for India.
  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Lumax Industries's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Lumax Industries is expected to increase by more than 50% in 2 years time.
  • Performance (ROE) is expected to be above the current IN Auto Components industry average.
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Cons

  • Lumax Industries is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Lumax Industries's performance (ROE) is expected over the next 3 years.

health

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Pros

  • Lumax Industries is profitable, therefore cash runway is not a concern.
  • Lumax Industries is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 1.9x debt.
  • Lumax Industries's cash and other short term assets cover its long term commitments.
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
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Cons

  • Lumax Industries's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Debt is not well covered by operating cash flow (15.7%, less than 20% of total debt).
  • The level of debt compared to net worth has increased over the past 5 years (50.7% vs 50.8% today).
  • Lumax Industries's level of debt (50.8%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Lumax Industries management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • The average tenure for the Lumax Industries board of directors is less than 3 years, this suggests a new board.
  • Vineet's remuneration is higher than average for companies of similar size in India.

misc

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Pros

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    Cons

    • Lumax Industries is covered by less than 3 analysts.
    • Lumax Industries has significant price volatility in the past 3 months.

    past

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    Pros

    • Lumax Industries has delivered over 20% year on year earnings growth in the past 5 years.
    • Lumax Industries used its assets more efficiently than the IN Auto Components industry average last year based on Return on Assets.
    • Lumax Industries has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
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    Cons

    • Lumax Industries's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Lumax Industries has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Lumax Industries's 1-year earnings growth is negative, it can't be compared to the IN Auto Components industry average.

    value

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    Pros

    • 517206 matched the Auto Components industry (-22.4%) over the past year.
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    Cons

    • Lumax Industries's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Lumax Industries's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Lumax Industries is overvalued based on assets compared to the IN Auto Components industry average.
    • Lumax Industries is overvalued based on earnings compared to the IN Auto Components industry average.
    • Lumax Industries is overvalued based on earnings compared to the India market.
    • 517206 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:517206 is up 4.9% underperforming the Auto Components industry which returned 13.2% over the past month.
    • BSE:517206 is up 4.9% underperforming the market in India which returned 8% over the past month.

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