Lumax Industries’ market capitalisation grade remains modest, with a current market cap grade of 3. The stock price has seen a slight decline of 0.89% on the day, trading at ₹5,125.00, marginally below its previous close of ₹5,171.25. The 52-week price range spans from ₹2,005.60 to ₹5,335.00, indicating significant price movement over the past year. Despite this, the company’s returns have outpaced the Sensex considerably, with a year-to-date return of 117.16% compared to the Sensex’s 8.36%, and a 10-year return of 1,098.83% against the benchmark’s 232.28%.
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When compared with peers in the Auto Components & Equipments industry, Lumax Industries’ valuation metrics present a nuanced picture. Its P/E ratio of 32.09 is lower than several expensive peers such as Motherson Wiring (52.32), JBM Auto (71.68), and Gabriel India (55.38), yet higher than more attractively valued companies like TVS Holdings (21.68). The enterprise value to EBITDA (EV/EBITDA) ratio of 18.05 also positions Lumax below some peers like ZF Commercial (35.69) and Jupiter Wagons (27.97), but above others such as Belrise Industries (14.97). This suggests a moderate premium relative to the sector, reflecting the market’s current assessment of Lumax’s earnings and operational efficiency.
Additional valuation parameters include an EV to EBIT of 30.26 and an EV to Capital Employed of 3.21, which align with the company’s classification as expensive. The PEG ratio of 1.58 indicates the relationship between price, earnings growth, and valuation, providing further context to the price level. Dividend yield remains modest at 0.68%, while return on capital employed (ROCE) and return on equity (ROE) stand at 10.62% and 18.30% respectively, highlighting operational returns and shareholder profitability.
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Examining Lumax Industries’ price movements over various periods reveals a strong performance relative to the broader market. The stock’s one-week return of 3.09% surpasses the Sensex’s 0.96%, while the one-month return of 2.42% also exceeds the benchmark’s 0.86%. Over longer horizons, Lumax’s returns remain robust, with a three-year return of 187.45% compared to the Sensex’s 37.31%, and a five-year return of 280.86% against the Sensex’s 91.65%. These figures underscore the stock’s capacity to generate substantial gains over time despite recent valuation adjustments.
In summary, Lumax Industries’ valuation parameters have undergone a revision that places the stock in an expensive category relative to its historical valuation and certain peers. While this reflects a change in price attractiveness, the company’s strong returns and operational metrics continue to support its market position. Investors analysing Lumax should consider these valuation shifts in the context of sector dynamics and broader market trends to make informed decisions.
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