Share of Lux Industries rose 19 per cent to hit a fresh 52-week high of Rs 3,322.75 in intraday session on BSE today.
The company reported a 202.85 per cent jump in consolidated net profit to Rs 91.32 crore for the quarter ended March 2021. Profit in the year-ago period stood at Rs 30.15 crore.
Net sales grew 106.87 per cent to Rs 596.13 crore in the March-ended quarter against Rs 288.16 crore a year ago.
The share of Lux Industries opened 0.08 per cent higher at Rs 2,800.00 against the previous close of Rs 2,797.75. The stock has gained 249 per cent in the last 12 months and risen 97 per cent since the beginning of this year.
Lux Industries share stands higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200 day moving averages.
As per the share price history, Lux Industries on BSE closed at Rs 2,041.7 on May 21, 2021. It hit an intraday high of Rs 3,322.75 in today's morning session. In a week, the stock has delivered 63 per cent returns. Market cap of the firm rose to Rs 8,225.53 crore.
Anand Rathi has retained a 'Buy' rating on Lux Industries with a revised target price of Rs 3,344 based on 30x FY23e EPS of Rs 111.
"We are upbeat on Lux's long-term growth prospects for its strong brand equity, launches and long-standing operations in innerwear. Its merger will unlock synergies to further propel growth," the brokerage firm said.
"Despite the local lockdown due to the Covid-19 Pandemic and the resulting challenges during the quarter, we witnessed healthy traction for our economy and mid-premium categories and saw a gradual pickup in our premium and export segment," said Ashok Kumar Todi, Chairman.
"We expect Q1 FY22 to be relatively weak due to the pandemic and expect to improve gradually from the second quarter. The Company has taken all the adequate steps to encounter and so the business has demonstrated strong resilience in the face of adversity and its fundamentals are strong," he noted.
"In anticipation of the improving demand and making ourselves future-ready, we have announced a greenfield expansion with a CAPEX of Rs. 110 crores. We have already identified a land parcel with a construction area of around 4,60,000 sq. ft. Of this area, around 20% to 30% will be used for manufacturing units and balance for warehousing, storage, and finishing facilities," he added.
He further added that the CAPEX will be completed over the next 12-18 months and will be funded through internal accruals. With this investment, the company expects to generate an incremental sale of around Rs. 400 crore."
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