Buy Lux Industries, target price Rs 2574: Anand Rathi

Anand Rathi has buy call on Lux Industries with a target price of Rs 2574. The current market price of Lux Industries Ltd. is Rs 1694.6.

Lux Industries Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 4283.04 Crore) operating in Apparels sector.

Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 392.91 Crore, up 1.32 % from last quarter Total Income of Rs 387.79 Crore and up 28.55 % from last year same quarter Total Income of Rs 305.66 Crore. Company reported net profit after tax of Rs 55.11 Crore in latest quarter.


Investment Rationale
The brokerage initiates coverage on Lux Industries with a Buy rating and a TP of Rs 2,574, based on 30x FY23e EPS. Risks: Slower growth of its premium range, keen competition and rise in raw material prices.

Promoter/FII Holdings
Promoters held 69.5 per cent stake in the company as of Dec 30, 2020, while FIIs held 4 per cent, DIIs 4.2 per cent and public and others 22.3 per cent.