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517206: New Plant And Energy Investment Will Shape Balanced Medium Term Outlook

LED Lighting And Localization Will Expand Market Opportunities

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517206
AnalystConsensusTarget
Not Invested
Published 15 Mar 2025

Update shared on 15 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
144.1%
7D
1.8%

Analysts have modestly raised their price target on Lumax Industries, citing a slightly lower implied discount rate and sustained expectations for high-teens revenue growth and steady profit margins that together support a fair value of ₹5,202.67 per share.

What's in the News

  • Lumax Industries raised its fiscal 2026 revenue growth guidance to 20% to 25%, up from 15% to 20%, signaling stronger demand visibility and operational confidence (company guidance filing).
  • The board will meet on November 7, 2025, to approve unaudited standalone and consolidated financial results for the second quarter and half year ended September 30, 2025 (board meeting notice).
  • Directors will also consider investing up to approximately INR 1.61 crores for up to a 26% stake in Power Pulse Trading Solutions Limited, a power trading arm of Adani Energy Solutions Limited, to qualify as a captive user and optimize energy sourcing (board meeting notice).
  • The same board meeting agenda includes evaluating the establishment of a new manufacturing plant in Bengaluru, Karnataka, with a planned capital outlay of around INR 140 crores to expand capacity and support future growth (board meeting notice).
  • Lumax Industries has been added to the S&P Global BMI Index, which may improve its visibility among global institutional investors and index linked funds (index inclusion announcement).

Valuation Changes

  • Fair Value: unchanged at approximately ₹5,203 per share, indicating no revision to the intrinsic value estimate.
  • Discount Rate: fallen slightly from about 15.51% to 15.35%, reflecting a marginally lower perceived risk or required return.
  • Revenue Growth: effectively unchanged at around 17.76% annualized, implying stable assumptions for top line expansion.
  • Net Profit Margin: broadly stable at about 5.22%, suggesting no material change in long term profitability expectations.
  • Future P/E: edged down slightly from roughly 22.55x to 22.46x, pointing to a marginally lower valuation multiple on expected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.