Stock Price Movement and Market Context
On the trading day, Lux Industries Ltd’s share price declined by 1.74%, underperforming its sector by 1.23%. The stock is currently trading below all major moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This new low price of Rs.1040.1 stands in stark contrast to its 52-week high of Rs.1935, representing a drop of approximately 46.3% from the peak.
Meanwhile, the broader market, represented by the Sensex, opened lower by 183.12 points and was trading at 84,635.74, down 0.38%. The Sensex remains close to its 52-week high of 86,159.02, just 1.8% away, and although it trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a generally positive market trend contrasting with Lux Industries’ performance.
Financial Performance and Profitability Trends
Lux Industries Ltd’s financial metrics reveal a challenging environment. The company has reported negative results for two consecutive quarters, with its Profit After Tax (PAT) for the latest six months at Rs.47.02 crores, reflecting a decline of 44.79% compared to previous periods. Similarly, Profit Before Tax excluding Other Income (PBT less OI) for the quarter stands at Rs.26.23 crores, down by 51.19%.
Operating cash flow for the year is notably negative at Rs.-80.52 crores, indicating cash outflows from core business activities. Over the last five years, the company’s operating profit has contracted at an annual rate of 6.72%, highlighting persistent pressure on profitability.
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Long-Term and Relative Performance
The stock’s one-year performance has been notably weak, with a decline of 44.52%, significantly underperforming the Sensex’s positive return of 8.30% over the same period. This underperformance extends beyond the last year, as Lux Industries has also lagged behind the BSE500 index over the past three years, one year, and three months.
Despite its sizeable market presence, domestic mutual funds hold a modest stake of only 0.35% in the company. Given their capacity for detailed research and due diligence, this limited exposure may reflect a cautious stance towards the stock’s valuation or business prospects.
Valuation and Capital Structure
Lux Industries maintains a low average debt-to-equity ratio of 0.10 times, indicating a conservative capital structure with limited leverage. The company’s Return on Capital Employed (ROCE) stands at 8.3%, which, while modest, contributes to a very attractive valuation metric with an enterprise value to capital employed ratio of 1.7 times. This valuation places the stock at a discount relative to its peers’ historical averages.
However, the company’s profitability has declined by 21% over the past year, aligning with the broader trend of subdued financial performance.
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Mojo Score and Market Sentiment
According to MarketsMOJO’s assessment, Lux Industries Ltd holds a Mojo Score of 29.0, categorised as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 6 Jan 2026, reflecting deteriorating fundamentals and market sentiment. The company’s market capitalisation grade is rated at 3, indicating a mid-tier size within its sector.
The downgrade in grading aligns with the company’s recent financial results and price performance, underscoring the challenges faced by the stock in maintaining investor confidence.
Summary of Key Metrics
To summarise, Lux Industries Ltd’s key performance indicators as of early January 2026 are as follows:
- 52-week low price: Rs.1040.1
- 52-week high price: Rs.1935
- One-year stock return: -44.52%
- Sensex one-year return: +8.30%
- Operating profit CAGR (5 years): -6.72%
- PAT (latest six months): Rs.47.02 crores, down 44.79%
- PBT less Other Income (quarterly): Rs.26.23 crores, down 51.19%
- Operating cash flow (yearly): Rs.-80.52 crores
- Debt to equity ratio (average): 0.10 times
- ROCE: 8.3%
- Enterprise value to capital employed: 1.7 times
- Mojo Score: 29.0 (Strong Sell)
These figures illustrate a company experiencing significant headwinds in both profitability and market valuation, with its share price reflecting these developments by reaching a new 52-week low.
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