Equirus Securities has initiated coverage on two growth-oriented mid-cap names — Lumax Auto Technologies and Sky Gold — highlighting their strong earnings potential and rapid scalability. Both companies are expected to deliver impressive CAGR growth across revenue, EBITDA, and PAT through FY28, driven by structural demand tailwinds.
Why Is Equirus Bullish on Lumax Auto Technologies?
Equirus expects both Lumax Auto Technologies and Sky Gold to outperform peers in their respective segments. Lumax is seen benefiting from premiumisation and emission-led upgrades in the auto sector, while Sky Gold is positioned to capture rising demand for lightweight and studded jewellery across export and domestic markets.
How Do the Growth Forecasts Compare for Both Companies? The following table presents a comparative summary of Equirus’ financial forecasts and key drivers for Lumax Auto Technologies and Sky Gold:
| Parameter | Lumax Auto Technologies | Sky Gold |
|---|---|---|
| Recommendation | Buy | Long |
| Target Price | ₹1,520 | ₹502 |
| Forecast Period | FY25–FY28E | FY25–FY28E |
| Revenue CAGR | +16% | +37% |
| EBITDA CAGR | +20% | +44% |
| PAT CAGR | +29% | +43% |
| Key Drivers | Premiumisation, CPV gains, emission norms, new products | Richer product mix, studded/lightweight jewellery, exports |
| Operational Leverage | EBITDA margins improved ~400bps (FY19–FY25), expected +120bps further | Capacity ramp-up from 225 kg to 1,260 kg/month |
| Growth Strategy | Right-priced acquisitions, mix gains, transition to system supplier | Shift from distributor-led to corporate-driven model |
Both companies demonstrate sector leadership potential within their niches. Lumax is transforming into a system-level supplier to OEMs, while Sky Gold is emerging as an export-led jewellery manufacturer leveraging higher-margin product categories.
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Why Is Equirus Confident About Lumax Auto’s Premiumisation Story? With stricter emission standards and rising content per vehicle, Lumax is expected to benefit from improving product mix, increased automation, and expanding client portfolio. The brokerage sees the company transitioning into a higher-margin system supplier by FY28.
Sky Gold, on the other hand, stands at the cusp of a strong multi-year growth phase. Its shift towards higher-value, export-driven products and strong domestic retail tie-ups enhance visibility for margin expansion and profitability improvement.
Should Investors Add These Stocks to Their Portfolios? Equirus believes both stocks represent emerging compounding stories in manufacturing and consumption segments. Long-term investors can consider gradual exposure, while short-term traders should watch volume patterns and earnings upgrades over the next two quarters.
For more detailed analysis on upcoming mid-cap growth stocks, follow structured advisory updates at SEBI Advisory section, curated for informed investors.
Both Lumax Auto Technologies and Sky Gold are positioned to benefit from evolving consumption and regulatory trends, combining operational leverage with robust revenue visibility into FY28.
Investor Takeaway: Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Equirus’ projections for Lumax and Sky Gold reinforce India’s manufacturing and luxury consumption themes, offering medium-term wealth creation potential through consistent earnings growth.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment adviser before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
