Choice Institutional Equities has issued a buy rating on Lumax Industries with a target price of ₹7100 in its research report dated August 11, 2026. According to the brokerage's analysis, the recommendation is supported by strong revenue visibility from the company's order book and accelerating LED penetration trends in the automotive lighting sector.
The company's order book stands at ₹25,000 million, representing approximately 55% of FY26 revenue. As reported by Choice Institutional Equities, around 90% of this order book comprises LED products, with 65% of the LED orders scheduled for start of production (SOP) in FY28E. This substantial LED component provides strong revenue visibility for future periods.
According to the brokerage's analysis, passenger vehicle (PV) contributed 64% of Q1FY27 revenue, while LED contribution increased from 61% to 63% in the same quarter. The share of revenue from major automotive manufacturers Maruti Suzuki and Tata Motors grew 43% and 68% year-on-year, respectively, supported by new model start of production schedules. This diversified customer base provides stability and growth potential across different automotive segments.
Choice Institutional Equities expects rising LED penetration, premiumisation and content per vehicle to remain key growth drivers for Lumax Industries. The brokerage highlights that these trends are supported by advanced technologies such as dynamic, laser and projector lighting. These technological advancements position the company to benefit from the ongoing shift toward premium automotive lighting solutions in the Indian market.
The brokerage has largely maintained its FY27/28E EPS estimates and continues to value the company at 22x on FY28E EPS. According to the report, the target price of ₹7100 is retained with the 'BUY' rating reiterated. The outlook is supported by strong revenue visibility from the order book, accelerating LED penetration and upcoming Bengaluru capacity commissioning, providing multiple growth catalysts for the company's future performance.
