Recent Price Movement and Market Context
On the day the new low was hit, Lux Industries’ share price fell by 1.63%, underperforming the Garments & Apparels sector by 1.59%. The stock touched an intraday low of Rs.873.9, representing a 2.34% decline from the previous close. This marks the second consecutive day of losses, with the stock delivering a cumulative negative return of 2.6% over this period. Notably, Lux Industries is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market showed resilience on the same day. The Sensex, after opening 100.91 points lower, rebounded to close 0.35% higher at 81,821.38 points. While the Sensex remains below its 50-day moving average, the 50-day average itself is positioned above the 200-day average, indicating a mixed but cautiously optimistic market environment. Mega-cap stocks led the gains, highlighting a divergence between large-cap strength and mid-to-small cap weakness.
Long-Term Performance and Valuation Metrics
Lux Industries’ one-year performance starkly contrasts with the Sensex’s 8.51% gain, as the stock has declined by 42.55% over the same period. The 52-week high for the stock was Rs.1,640, underscoring the magnitude of the recent fall. Over the last three years, the stock has consistently underperformed the BSE500 index, reflecting persistent headwinds.
Despite the decline, the company maintains a low average debt-to-equity ratio of 0.10 times, which is a positive indicator of financial leverage. The return on capital employed (ROCE) stands at 8.3%, and the enterprise value to capital employed ratio is 1.4, suggesting the stock is trading at a discount relative to its peers’ historical valuations. However, these valuation metrics have not translated into positive market sentiment or price appreciation.
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Financial Performance Trends
Lux Industries has experienced a decline in operating profit at an annualised rate of 6.72% over the past five years, indicating subdued growth in core earnings. The company has reported negative results for two consecutive quarters, further contributing to investor caution.
Interest expenses for the nine months ended have increased by 56.50%, reaching Rs.23.10 crores, which has exerted pressure on profitability. Profit before tax excluding other income (PBT less OI) for the quarter has fallen sharply by 51.19% to Rs.26.23 crores. Operating cash flow for the year has also deteriorated, registering a negative Rs.80.52 crores, highlighting cash generation challenges.
Profitability has declined alongside the stock price, with profits falling by 21% over the past year. This combination of reduced earnings and cash flow pressures has weighed on the stock’s performance and contributed to its current valuation levels.
Shareholding and Market Perception
Despite the company’s size, domestic mutual funds hold a modest stake of only 0.35%. Given their capacity for detailed research and on-the-ground analysis, this limited exposure may reflect a cautious stance towards the company’s current valuation or business outlook.
Lux Industries’ Mojo Score stands at 29.0, with a Mojo Grade of Strong Sell as of 6 Jan 2026, an upgrade from the previous Sell rating. The market capitalisation grade is 3, indicating a mid-tier valuation category. These metrics underscore the prevailing market sentiment and the challenges faced by the stock in regaining investor confidence.
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Sector and Market Comparisons
Within the Garments & Apparels sector, Lux Industries’ recent performance contrasts with broader sector trends. While the sector has faced some pressure, Lux’s underperformance relative to peers and indices such as NIFTY MEDIA and NIFTY REALTY, which also hit 52-week lows on the same day, highlights sector-wide volatility. However, Lux’s decline is more pronounced, reflecting company-specific factors.
The stock’s current trading below all major moving averages further emphasises the prevailing downtrend. This technical positioning suggests that the stock has yet to find a stable support level after its significant fall from the 52-week high of Rs.1,640.
Summary of Key Metrics
To summarise, Lux Industries Ltd’s stock has declined by 42.55% over the past year, with profits falling by 21% and operating cash flow turning negative at Rs.-80.52 crores. Interest costs have risen sharply, and profitability metrics have weakened. The stock trades at a discount to peers but remains under pressure, reflected in its Strong Sell Mojo Grade and low mutual fund holding.
These factors collectively explain the stock’s recent fall to a new 52-week low of Rs.873.9, underscoring the challenges faced by the company in the current market environment.
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