Lumax Auto Technologies Adjusts Valuation Grade Amid Competitive Auto Ancillary Landscape

Lumax Auto Technologies has recently undergone a valuation adjustment, reflecting a shift in its financial assessment. The company, operating in the auto ancillary sector, currently presents a PE ratio of 22.89 and a price-to-book value of 4.48. Its EV to EBITDA stands at 10.36, while the EV to EBIT is recorded at 14.82. The PEG ratio is notably low at 0.49, and the dividend yield is at 1.00%. Key performance indicators show a return on capital employed (ROCE) of 21.91% and a return on equity (ROE) of 18.59%.
In comparison to its peers, Lumax Auto Technologies maintains a competitive position. Sharda Motor and Fiem Industries also reflect fair valuations, with PE ratios of 14.72 and 19.85, respectively. In contrast, Subros and JTEKT India are positioned at higher valuation levels, indicating a varied landscape within the auto ancillary industry. The company's stock performance has shown resilience, with a year-to-date return of -15.06%, contrasting with the Sensex's 3.34% return. Over a longer horizon, Lumax has outperformed the Sensex significantly, particularly over the past five and ten years.