Latest news with #LumaxAutoTechnologies
Time of India
2 days ago
- Automotive
- Time of India
Lumax Auto extends CEO Vikas Marwah's term by five years
New Delhi: Tier-1 automotive component player Lumax Auto Technologies has approved the extension of Chief Executive Officer (CEO) Vikas Marwah 's term for five years, effective November 1, 2025. Marwah joined the Lumax DK Jain Group as Chief Strategy Officer in 2018 and assumed the CEO role on May 2, 2020. Since then, he has played a key role in driving business expansion into new geographies, diversifying the product portfolio, opening new revenue streams, and strengthening OEM relationships. As per the company's policy, he will reach the age of superannuation on October 31, 2025. However, in view of his leadership skills and contribution to the company's growth, the board has approved his reappointment. Prior to Lumax, Marwah was associated with Varroc as Chief Sales & Marketing Officer and Senior Vice President. With a career spanning over three decades, he has worked with several renowned companies, including Sona Koyo Steering Systems, Hertz, JK Tyre, and Goodyear Tyre, among others. Also Read:Lumax Group CEO Vineet Sahni resigns '...Extension of the term of Vikas Marwah as the Chief Executive Officer (Key Managerial Personnel designated as Senior Management) of the Company for a period of five years with effect from November 1, 2025, consequent to attaining the age of superannuation on October 31, 2025, based on the recommendation of the Nomination & Remuneration Committee,' said a company statement. The Lumax Auto Technologies board has also approved setting up a branch office in China to explore new business prospects and strengthen technological capabilities, along with establishing a Technology Centre, SHIFT (Smart Hub for Innovation and Future Trends), in Bengaluru. The Gurugram-based DK Jain Group has two publicly traded companies– Lumax Industries, which manufactures auto lighting solutions, and Lumax Auto Technologies, which is engaged in telematics, gear shifters, antennas, plastic modules, and other components.
Business Standard
4 days ago
- Automotive
- Business Standard
Lumax Auto Technologies consolidated net profit rises 30.66% in the June 2025 quarter
Sales rise 35.78% to Rs 1026.37 crore Net profit of Lumax Auto Technologies rose 30.66% to Rs 41.42 crore in the quarter ended June 2025 as against Rs 31.70 crore during the previous quarter ended June 2024. Sales rose 35.78% to Rs 1026.37 crore in the quarter ended June 2025 as against Rs 755.93 crore during the previous quarter ended June 2024. Particulars Quarter Ended Jun. 2025 Jun. 2024 % Var. Sales 1026.37755.93 36 OPM % 12.1711.65 - PBDT 112.6986.02 31 PBT 74.2456.50 31 NP 41.4231.70 31
Mint
23-07-2025
- Automotive
- Mint
Auto stocks are surging—even as sales sputter and supply risks rise
Mumbai: India's auto and auto ancillary stocks are on a tear—even as sales sputter and supply chain clouds gather. Some lesser-known auto component makers have posted triple-digit stock market gains in the past three months, eclipsing marquee vehicle manufacturers and defying a cautious outlook for the industry. Shares of Frontier Springs have soared 151%, Lumax Auto Technologies is up 110%, and Kinetic Engineering has gained 90%, outpacing commercial vehicle makers Force Motors's 85% and SML Isuzu's 78% gains. One of the key drivers behind the rally, analysts say, is liquidity. Flush markets and improved risk appetite have lifted not just autos, but other sectors as well. Hopes of a festive season demand rebound, coupled with a potential trickle-down from banks following the Reserve Bank of India's 50-basis-point rate cut, have added to the optimism. Still, it hasn't been a smooth ride for all auto and auto ancillary stocks. Containe Technologies (-28%), Ola Electric (-23%), Atul Auto (-9%), GNA Axles (-11%), and JBM Auto (-9%) have seen corrections over the past three months, while the Nifty Auto index has risen 7.2%. Hyundai Motor India fared better with 26% gains in the past three months, followed by Mahindra and Mahindra (17%), TVS Motor Co. (4%), Bajaj Auto (2%), and Maruti Suzuki India (6%). Some market participants caution that if the expected rate cut transmission to borrowers or retail loan growth fails to play out, auto stocks could be in for a sharp pullback. The current surge is drawing attention because it runs counter to the broader outlook: domestic vehicle demand remains muted, supply chain risks from a rare-earth-magnet shortage are mounting, and analysts warn of earnings pressure in the September quarter if the disruption persists. While some investors see the issue as temporary, others worry the rally may be running ahead of fundamentals. A 15 July report by BNP Paribas showed mutual funds slightly trimmed their overweight position in the auto sector—to 7.7% in June from 8.0% in May. Foreign institutional investor exposure dipped to 6.9% from 7.0% in the same period—but market experts explained that this doesn't necessarily mean FIIs exited auto stocks, and could reflect allocations to other sectors instead. Foreign portfolio investors, meanwhile, pumped in $553 million in auto stocks in June, up from just $11 million in May, according to NSDL data. FPIs were net sellers in the auto sector for nine straight months, from August 2024 through April 2025. Supply chain concerns Rare earth magnet supply remains a key concern. These magnets—critical for both electric vehicles (EV) and internal combustion drivetrain components—are used in electric motors, oxygen sensors, lasers, and a wide array of industrial and medical applications. China dominates this supply chain, and its recent decision to restrict exports of certain rare earth materials has raised alarm across global auto markets. In June, Maruti Suzuki and Bajaj Auto said they had sufficient magnet inventory through July. Kumar Rakesh, analyst at BNP Paribas, said there is no immediate earnings risk from the rare earth crisis, as most companies are believed to have sufficient inventory through July. 'Investors largely expect the issue to be resolved by then," he said, adding that if new model launches get delayed, that could be a warning sign. But concerns persist. On 11 June, Reuters reported that Maruti had slashed near-term production targets for its debut EV, the e-Vitara, by two-thirds due to magnet shortages. Rakesh added that the pressure may not be limited to EVs. 'Even ICE vehicles could feel some pressure," he said, referring to conventional vehicles run on internal combustion engines. Companies are already exploring alternative sourcing options and diversifying supply chains, Rakesh added. 'For now, it looks more like a short-term disruption than a long-term threat." Sourcing under scrutiny In an earnings call on 30 April, Vivek Vikram Singh, managing director and group chief executive of SONA BLW Precision Forgings, flagged near-term supply chain risks. 'In India, while we are working with the industry and the government and the Chinese embassy to speed up the process of importing magnets from China, we're also evaluating alternate materials, including Ferrite, different grades of magnets, different technologies, as well as different supply sources," he said. Singh warned the disruption could hit global auto production in the short term. 'The threat of a rare earth minerals shortage is real, and the impact could be visible in the near term, especially for EVs," said Rajat Chandak, senior fund manager at ICICI Prudential Mutual Fund. He added that alternate sourcing arrangements are being explored, but scaling them will require government support. 'One option available to OEMs (original equipment manufacturers) is to import the entire motor, rather than just the magnets or rare earth minerals," he said. TVS Motor Co., for a second month in a row, flagged a similar concern in its June update, noting that 'magnet availability remains a challenge in the short to medium term". Its EV sales dropped to 14,400 units in June from 27,976 in May. Demand remains sluggish Soft domestic demand is adding to the auto sector's complexity. Growth in FY26 is expected to remain in low single digits across most auto segments, said Arun Agarwal, vice president–fundamental research, at Kotak Securities. Tractors may hold up slightly better than passenger vehicles, but overall momentum is weak, he said. Sales data for the April-June quarter released by the Society of Indian Automobile Manufacturers (Siam) earlier this month showed mixed trends. Passenger vehicle sales crossed the 1 million mark, reaching 1.01 million units, but due to weaker sales toward the end of the quarter volumes declined 1.4% year-on-year. Two-wheeler sales fell 6.2% to 4.67 million units, largely due to inventory corrections across the industry. Three-wheeler sales in the financial first quarter hit a record 165,000 units, up 0.1% year-on-year, driven by the passenger carrier segment. Commercial vehicle sales declined marginally by 0.6% to 223,000 units. 'Looking ahead to Q2, the overall industry outlook remains cautiously optimistic," Siam said. While challenges may persist in the near term, a few positive indicators could support a recovery: the upcoming festive season may lift demand for passenger vehicles and two-wheelers; above-normal monsoons could boost rural income and entry-level vehicle sales; and the Reserve Bank of India's 100-basis-point (bps) rate cuts this year could eventually improve affordability and consumer sentiment. 'However, the supply-side challenges—especially the recent export licensing requirement from China on rare earth magnets—have been a concern for OEMs of all categories," Siam said. Agarwal cautioned that prolonged softness could force automakers to resort to discounting, putting margins under pressure. 'Low volumes hurt operating leverage, putting further pressure on profitability," he said. Earnings on watch Kotak Institutional Equities expects auto companies it covers to report 1% revenue growth for the first quarter, supported by mid-single-digit growth in vehicles and price realization gains, partly offset by deeper discounts and weak global sales. 'We expect Ebitda margins to decline by 210 bps (year-on-year), driven by higher discounts, commodity headwinds (tires), higher advertisement spends and tariff-related hits," the brokerage said in a 2 July report. For auto ancillary companies, the revenue outlook appears slightly stronger. Kotak expects 6.6% year-on-year revenue growth in the first quarter, driven by low- to mid-single-digit growth in vehicles and mid- to high-single-digit gains in replacement segments like tyres and bearings. Tractor-linked volumes are expected to rise in the low teens. However, even ancillaries aren't immune to pressures. Kotak expects Ebitda margins to decline 60 basis points year-on-year due to weaker product mix (batteries), raw material headwinds (tires), and a weaker export mix. The brokerage added that companies with exposure to the global auto market are likely to report weak numbers, given decline in production volumes, especially in the US. Auto makers will begin reporting their June-quarter earnings on 23 July, with Force Motors scheduled to announce first. Investors will be watching closely to see whether earnings justify the recent stock gains—or reveal signs of overreach.
Time of India
23-07-2025
- Business
- Time of India
FIIs increase stake in 264 smallcap stocks, 3 of them turn multibagger in 2025. Do you own any?
Foreign Institutional Investors (FIIs) have been actively increasing their stakes in Indian smallcap stocks, with some picks yielding multibagger returns in 2025. Sectors like auto ancillaries, financial services, and defense have particularly attracted FII attention. While some stocks have thrived, others have underperformed, highlighting the inherent volatility in the smallcap market and the importance of selective investing. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Foreign institutional investors (FIIs), who have been hunting for greener pastures in the broader market, found at least 3 of their Q1 picks delivering explosive multibagger returns of up to 165% in 2025 alone, leaving retail investors scrambling to catch analysis of shareholding pattern data from the June quarter reveals that FIIs raised stakes in at least 264 smallcap stocks . The standout winner has been Force Motors , which makes engines for the likes of Mercedes, BMW and Rolls Royce Daimler. The stock is up 165% year-to-date and FIIs have increased their holding from 8.36% to 9.77%.The foreign money managers' Midas touch extends beyond just Force Motors. Camlin Fine Sciences delivered a hefty 125% return where FIIs have nearly doubled their stake from 1.47% to 2.88% in just 3 months. Gabriel India rounds out the multibagger trio with a 107% gain, as foreign investors boosted their position from 5.23% to 5.97%.But the success story doesn't end there. A remarkable 17 stocks from the FII-backed list have delivered returns of at least 50% in 2025, creating a winners' circle that includes Lumax Auto Technologies (77%), Authum Investment & Infrastructure (69%), and RBL Bank (65%).The automotive sector emerges as a clear FII favorite, with multiple auto component companies featuring prominently in the high-returns list. Lumax Industries gained 66% alongside its sister company Lumax Auto Technologies, while Federal-Mogul Goetze India surged 55% despite FIIs adding just 14 basis points to their Micro Systems saw the largest stake increase, with FII holding jumping from 0.93% to 7.16%, a massive 623 basis point surge that coincided with a solid 56% stock and infrastructure stocks have also caught FII attention. PSU defence stock GRSE delivered 60% returns as FII stakes rose to 5.33% from 3.85%, while Bharat Dynamics gained 53.18% with foreign holdings increasing to 3.77%.The financial services sector represents another FII hunting ground. RBL Bank's 65% surge came alongside a significant 313 bps increase in FII holding to 17.56%. Similarly, Cholamandalam Financial Holdings rewarded foreign investors with 52% returns as they raised stakes to 18.32%.Even modest FII increases have translated into meaningful returns. Navin Fluorine International gained 53% despite FII holdings rising by just 139 bps, while specialty chemicals player Shankara Building Products delivered 53% returns as FII stakes nearly doubled from 5.69% to 10.55%.Healthcare stocks haven't escaped FII radar either. Narayana Hrudayalaya provided 51% returns with FII holding climbing to 10.46%, demonstrating the breadth of foreign investor interest across foreign investors' smallcap strategy appears particularly focused on auto ancillaries, financial services, specialty chemicals, defence, and healthcare, sectors that have been riding India's economic momentum and structural growth not all FII picks have delivered immediate gratification. Some high-profile names in the list have struggled, with stocks like Advanced Enzyme Technologies declining 4.36% despite FIIs dramatically increasing their stake by 1155 bps to 23.45%. This underscores that even sophisticated foreign money managers aren't immune to market brokerage firm Emkay Global has recently revamped its model portfolio to include small and midcap stocks and reduce largecap holdings."Our model portfolio is primarily large-cap focused (Rs500bn+ market cap) with a dedicated 40% allocation to a fixed basket of 5 SMID-cap stocks as a strategic carve-out within the model portfolio is run on a top-down basis from within our Emkay universe," it said. Emkay's 5 small and midcap ideas include Bikaji Foods, Motilal Oswal. Shriram Pistons, Metropolis Healthcare and analysts point out that midcap stocks have outperformed smallcaps over the long term due to better risk-adjusted returns, stronger business fundamentals, and higher survivability."While smallcaps offer higher short-term growth potential, they are more volatile and prone to failure. Midcaps, being more mature and financially stable, attract greater institutional interest and provide more consistent performance, making them a more reliable investment over extended periods," Equirus Wealth a meaningful rally from April lows, valuations are no longer cheap."Largecaps are above long-term averages, and mid-/small-caps are trading at a premium. Still, headline P/Es mask the deeper story — midcaps continue to deliver stronger earnings growth and justify selective premium valuations. We now enter a phase where markets won't reward broad exposure. The easy beta-driven gains may be behind us. From here, business quality, earnings consistency, and management execution will define outcomes," it said.(Data: Ritesh Presswala)(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
17-06-2025
- Automotive
- Business Standard
Lumax Auto, Subros zoom over 100% from 3-mth lows; what's behind the rally?
Share price movement of Lumax Auto, Subros today Shares of Lumax Auto Technologies (₹1,113.90) and Subros (₹1,084) hit their respective new highs, as these stocks rallied up to 10 per cent on the BSE in Tuesday's intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 0.22 per cent at 81,618 at 11:30 AM. These two stocks have seen their share prices more-than-double from their respective 3-month lows. Among individual stocks, Lumax Auto Technologies has zoomed 146 per cent from a level of ₹452.55 on April 7, 2025. Share price of Subros surged 116 per cent from ₹501.55 on March 17, 2025. In the past two trading days, the stock has zoomed 30 per cent from a level of ₹831 on Friday, June 13, 2025. Catch Stock Market Latest Updates Today LIVE What's driving auto related stocks? Subros is the leading manufacturer of thermal products for automotive applications in India, in technical collaboration with Denso Corporation, Japan. The company is engaged primarily in the business of manufacturing and sale of thermal products for automotive and home air-conditioning original equipment manufacturers (OEMs). Subros medium-term growth prospects remains healthy, given its strong market position in the passenger vehicle (PV) industry and continued demand in the industry. Further, the notification from the Government of India mandating air-conditioned (AC) fitted cabins in N2 and N3 trucks (both segments combined cover trucks having gross vehicle weight exceeding 3.5 tonnes), manufactured after October 2025, is expected to generate incremental revenue prospects for the company. The company is expected to continue its growth momentum on account of new product development for various models of PVs, buses, trucks and the railways segment. While the company has significantly muted its sales in the home AC segment due to low segment margins amid inflationary pressure in the fixed price nature of contracts, an increase in the contribution from the other business segments, such as commercial vehicle (CVs) and Indian Railways is expected to support its earnings growth prospects, according to ICRA. Meanwhile, in the past three weeks, the stock price of Lumax Auto Technologies, a leading automotive component manufacturer, has zoomed 63 per cent after the company showcased strong operational performance and strategic expansion through inorganic growth initiatives through its March quarter earnings. The company recorded its highest-ever annual revenue and earnings before interest, tax, depreciation and amortisation (Ebitda), and surpassed the ₹1,000 crore mark in quarterly revenue for the first time. The performance was driven by strong demand across all segments and deepening engagement with OEM partners. Improvement in Ebitda growth highlights the strength of the company's operating model, supported by improved efficiencies, prudent cost management and continued focus on value-added offerings, the management said. With a well-diversified product portfolio and deep integration with leading OEM platforms, the management said the company remains strongly positioned to capitalize on evolving opportunities across segments in a structurally improving macro environment. With a robust balance sheet, strategic acquisitions, and expanding product portfolio, Lumax Auto Technologies said the company is well-positioned to capitalize on the growing automotive market and emerging mobility solutions. Given the healthy order book led by double digit growth prospects, stable margin profile, earnings accretive value conscious acquisitions and impressive return ratios matrix, analysts maintain their positive view on the company.
