ScoreWhy is Lux Industries Ltd ?
1
Company has a Debt to Equity ratio (avg) of 0.10 times
2
Poor long term growth as Operating profit has grown by an annual rate -16.26% of over the last 5 years
3
The company has declared Negative results for the last 4 consecutive quarters
- PBT LESS OI(Q) At Rs 45.37 cr has Fallen at -29.10%
- ROCE(HY) Lowest at 7.39%
- DEBT-EQUITY RATIO(HY) Highest at 0.34 times
4
With ROCE of 6.8, it has a Very Attractive valuation with a 1.9 Enterprise value to Capital Employed
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -11.24%, its profits have fallen by -34.8%
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -11.24% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Lux Industries should be less than 10%
- Overall Portfolio exposure to Garments & Apparels should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Garments & Apparels)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Lux Industries for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Lux Industries
-11.24%
-0.24
46.31%
Sensex
-5.98%
-0.45
13.24%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.45%
EBIT Growth (5y)
-16.26%
EBIT to Interest (avg)
11.77
Debt to EBITDA (avg)
1.46
Net Debt to Equity (avg)
0.20
Sales to Capital Employed (avg)
1.33
Tax Ratio
22.86%
Dividend Payout Ratio
3.79%
Pledged Shares
0
Institutional Holding
5.50%
ROCE (avg)
15.98%
ROE (avg)
11.88%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
36
Industry P/E
24
Price to Book Value
2.12
EV to EBIT
28.54
EV to EBITDA
23.76
EV to Capital Employed
1.94
EV to Sales
1.45
PEG Ratio
NA
Dividend Yield
0.15%
ROCE (Latest)
6.78%
ROE (Latest)
5.88%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bullish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend1What is working for the Company
NET SALES(Q)
Highest at Rs 873.01 cr
-19What is not working for the Company
PBT LESS OI(Q)
At Rs 45.37 cr has Fallen at -29.10%
ROCE(HY)
Lowest at 7.39%
DEBT-EQUITY RATIO(HY)
Highest at 0.34 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.59 times
INTEREST(Q)
Highest at Rs 10.96 cr
PAT(Q)
At Rs 43.88 cr has Fallen at -8.8%
Loading Valuation Snapshot...
Here's what is working for Lux Industries
Net Sales - Quarterly
Highest at Rs 873.01 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for Lux Industries
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 45.37 cr has Fallen at -29.10%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.34 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Interest - Quarterly
Highest at Rs 10.96 cr
in the last five quarters and Increased by 12.18 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit After Tax (PAT) - Quarterly
At Rs 43.88 cr has Fallen at -8.8%
Year on Year (YoY)MOJO Watch
Near term PAT trend is negative
PAT (Rs Cr)
Debtors Turnover Ratio- Half Yearly
Lowest at 2.59 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
Non Operating Income - Quarterly
Highest at Rs 11.29 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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