Multibagger: Lumax Auto stock grows 230% in 2 years, 400% in 5 years; is it still a ‘buy’?

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Lumax Auto being a notable performer. The company's shares have been on a consistent winning streak, concluding the last 17 months with impressive gains.Also Read: Amara Raja shares gain 108% in CY24 so far; what lies ahead for this battery stock?From their January 2023 trading price of ₹224 apiece, they have surged by a remarkable 147% to trade at the current price of ₹554 apiece.

Over the last two years, the shares have jumped 230%, and in the last five years, they have gained 400%.Lumax Auto is a leading auto component manufacturer with a well-diversified product portfolio. The company supplies to most of the leading 2W OEMs in the country and is present in the 2W and 3W segments, passenger cars, and aftermarkets.In its latest report, domestic brokerage firm Sharekhan highlighted the company’s success in securing significant orders, bolstered by the acquisition of IACI.

As of FY2024, the company’s order book stands at ₹900 crore, with 90% coming from new business.The brokerage also noted that the quality of the company's order book has improved, with the EV segment now constituting around 40% of the total order book.Also Read: Multibagger Stock: Garware Hi-Tech Films shares zoomed over 160% in a year, surged 1060% in 4 yearsThe brokerage stated that the company's revenue from the passenger vehicle (PV) segment has improved, driven by contributions from IACI. Mahindra & Mahindra (M&M), one of IACI’s major clients, accounted for 26% of the company's revenue in FY2024.IACI is undergoing capacity expansions with a capital expenditure of around ₹50 crore in FY2025.