As of May 30, 2025, Lumax Auto Technologies Ltd. (NSE: LUMAXTECH) is trading at ₹811.55, marking a 16.5% intraday increase and reaching a new 52-week high of ₹834.00.
Technical Analysis: 4-Hour Chart with Supertrend (35,6)
On the 4-hour chart, Lumax Auto Technologies exhibits a strong bullish trend. The Supertrend indicator (35,6) confirms this momentum, with the price well above the trendline, suggesting continued upward movement. A prudent exit strategy would involve closing positions if the price decisively falls below the Supertrend line, indicating a potential trend reversal.
The recent breakout above ₹750, coupled with substantial volume, reinforces the bullish sentiment. Given the stock’s 76% rally from its April low of ₹452.55, short-term traders might consider booking partial profits or setting trailing stop-loss orders to protect gains.
Fundamental Overview
🔹 Earnings & Growth
- Q4 FY25 Revenue: ₹1,133 crore, a 50% increase from ₹757 crore in Q4 FY24.
- FY25 Revenue: ₹3,637 crore, up 29% from ₹2,822 crore in FY24.
- FY25 Net Profit: ₹229 crore, a 37% rise from the previous year.
- EPS: ₹26.08 for FY25, up from ₹19.10 in FY24.
🔹 Financial Ratios
- Return on Equity (ROE): 20.6% in FY24.
- Return on Capital Employed (ROCE): 19.3% in FY24.
- Debt-to-Equity Ratio: 0.97, indicating manageable leverage.
- EBITDA Margin: 14.63% in FY24, reflecting operational efficiency.
Pros & Cons
Pros
- Strong Earnings Growth: Consistent revenue and profit growth over recent quarters.
- Operational Efficiency: Improved margins and returns on equity and capital employed.
- Market Leadership: A key player in the auto ancillary sector with a diversified product portfolio.
Cons
- Valuation Concerns: The current P/E ratio of 31.3 may be considered high relative to historical averages.
- Market Volatility: Recent rapid price appreciation could lead to short-term volatility.
Investment Perspective
🔹 Short-Term (1–3 months)
Given the strong upward momentum and recent breakout, short-term traders might find opportunities for gains. However, caution is advised due to potential volatility following the rapid price increase.
🔹 Long-Term (1–3 years)
Lumax Auto Technologies’ consistent earnings growth, operational efficiency, and strong market position make it a compelling candidate for long-term investment. Investors should monitor valuation metrics and market conditions to optimize entry points.
Disclaimer:
This analysis is for informational and educational purposes only and should not be considered as financial advice or a recommendation to buy or sell any stock. The data used is based on publicly available sources as of May 30, 2025 and my personnel opinion, and may be subject to change. Stock markets are volatile, and investments are subject to market risks. Please consult a certified financial advisor or conduct your own due diligence before making any investment decisions. The author or publisher will not be held responsible for any financial losses or gains based on this information.
