Lux Industries Ltd. (LUXIND) AI Stock Analysis

• Market Cap: ₹28.04B
• Dividend Yield: 0.18%
• Average Volume (3M): 1.88K
• Price to Earnings (P/E): 22.0
• Beta (1Y): 1.45
• Revenue Growth: 16.32%
• EPS Growth: -20.97%
• Country: IN
• Employees: 3,364
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 7.80
• Shares Outstanding: 30,071,680
• 10 Day Avg. Volume: 830
• 30 Day Avg. Volume: 1,883
• PEG Ratio: 0.91
• Price to Book (P/B): 2.40
• Price to Sales (P/S): 1.62
• P/FCF Ratio: -35.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹942.00 ▼(-11.09% Downside)

Lux Industries faces significant challenges with cash flow management and bearish technical indicators, despite strong revenue growth and a stable balance sheet. The high P/E ratio suggests potential overvaluation, and the low dividend yield offers limited income potential.

Positive Factors

Revenue Growth

Consistent double-digit top-line growth (12.88% YoY) indicates enduring demand for core apparel and hosiery products and supports scale benefits across manufacturing and distribution. Over 2–6 months this underpins capacity utilization, bargaining power with suppliers, and long-term revenue base expansion.

Strong Balance Sheet

A high equity ratio and low debt-to-equity (0.18) provide financial flexibility for strategic investment and shock absorption. This prudent leverage profile supports sustained capex, working-capital funding and lowers bankruptcy risk, strengthening the company's ability to execute medium-term growth plans.

Improving Operating Margins

Material improvement in EBIT and EBITDA margins signals better operational efficiency and cost management that can be durable if sustained. Margin expansion enhances free cash generation potential and competitive resilience, providing a structural cushion against raw-material volatility over coming quarters.

Negative Factors

Negative Free Cash Flow

A materially negative free cash flow (-1,173 million) despite reported profits indicates weak cash conversion and operating cash generation. Persisting cash deficits can constrain capex, working-capital needs, dividends, or debt servicing and may require financing actions that dilute strategic flexibility over the medium term.

Declining Gross Margin

A sharp drop in gross margin from 52.58% to 32.54% reflects worsening cost control or adverse input-price mix. Sustained margin deterioration erodes pricing power and long-run profitability, forcing either higher prices (risking volume) or margin compression that undermines the benefits of revenue growth.

EPS Contraction

Significant negative EPS growth (-20.97%) shows earnings per share are contracting even as revenue rises, pointing to margin, cost or capital-structure pressures. Continued EPS weakness can limit reinvestment capacity, shareholder returns and investor confidence in the firm's ability to translate sales into sustainable shareholder value.

Lux Industries Ltd. Business Overview & Revenue Model

Company Description

Lux Industries Limited manufactures and sells knitwear in India. The company offers vests, briefs, boxers, drawers and trunks, T-shirts, hoodies and sweatshirts, polo and tees, shorts, tracks, tops and bottoms, winter wear, leggings, racer backs, camisole straps, slips, loungers and pyjamas, bras, and panties under the Lux Venus, Lux Classic, Lux Karishma, Lux Touch, GenX, Lux Cozi, Lux Cozi Big Shot, Lux Cott's Wool, Lux Inferno, Lux Mozze, ONN, Lyra, Lux Cozi GLO, Lux Cozi Her, Lux Venus Classic, and One8 for men, women, and kids. It also exports its products to 46 countries worldwide. The company was formerly known as Biswanath Hosiery Mills and changed its name to Lux Industries Limited in 1995. Lux Industries Limited was incorporated in 1957 and is headquartered in Kolkata, India.

How the Company Makes Money

Lux Industries Ltd. generates revenue through the production and sale of its hosiery products. The company's primary revenue stream comes from the sale of innerwear and casual wear, which it markets under various brands targeting different demographics and price points. Lux Industries utilizes a wide distribution network that includes wholesalers, retailers, and e-commerce platforms to reach its customers. The company's partnerships with distributors and retailers help maximize its market reach and sales volume. Additionally, Lux Industries invests in brand promotion and advertising to enhance brand visibility and drive sales growth. Export sales also contribute to the company's revenue, as it seeks to increase its presence in international markets.

Lux Industries Ltd. Financial Statement Overview

Summary

Lux Industries shows strong revenue growth and improved operational margins, but faces significant cash flow challenges. The balance sheet is stable with low debt, yet cash flow inefficiencies pose risks.

Income Statement

Lux Industries has shown a consistent increase in total revenue over the years with a notable annual revenue growth of 12.88% from 2024 to 2025. However, the gross profit margin decreased to 32.54% in 2025 from 52.58% in 2024, indicating reduced efficiency in controlling production costs. The net profit margin also showed a decline to 6.33% in 2025 from 5.60% in 2024, although it signifies profit growth. EBIT and EBITDA margins improved significantly in 2025, showing better operational profitability.

Balance Sheet

The company's balance sheet reveals a strong equity position with an equity ratio of 67.50% in 2025, indicating financial stability. The debt-to-equity ratio stands at 0.18, reflecting prudent leverage management. However, the return on equity (ROE) decreased slightly to 9.55% in 2025, suggesting a need to enhance shareholder returns. Overall, the balance sheet shows a stable financial foundation with manageable debt levels.

Cash Flow

Lux Industries experienced a significant reduction in free cash flow in 2025, resulting in a negative free cash flow of -1,173 million. The operating cash flow to net income ratio is negative, indicating cash flow challenges despite positive net income. The free cash flow to net income ratio also reflects cash flow inefficiencies. Cash flow management appears to be a critical area for improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	26.45B	25.70B	23.14B	23.61B	22.83B	19.43B
Gross Profit	7.79B	8.51B	12.20B	6.81B	13.98B	11.00B
EBITDA	2.53B	2.66B	2.14B	2.33B	4.90B	3.93B
Net Income	1.55B	1.65B	1.30B	1.42B	3.40B	2.71B
Balance Sheet
Total Assets	0.00	25.64B	21.89B	21.19B	20.12B	14.92B
Cash, Cash Equivalents and Short-Term Investments	2.06B	2.06B	2.59B	1.36B	1.30B	2.61B
Total Debt	0.00	3.17B	2.11B	2.68B	3.50B	1.37B
Total Liabilities	-17.15B	8.49B	6.37B	6.78B	7.09B	4.91B
Stockholders Equity	17.15B	17.30B	15.67B	14.52B	13.10B	10.06B
Cash Flow
Free Cash Flow	0.00	-1.17B	1.97B	964.70M	-3.03B	3.22B
Operating Cash Flow	0.00	-805.20M	2.29B	1.81B	-2.28B	3.89B
Investing Cash Flow	0.00	-123.50M	-1.24B	-884.60M	438.00M	-1.77B
Financing Cash Flow	0.00	705.20M	-909.90M	-1.18B	1.52B	-1.33B

Lux Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1059.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LUXIND, the sentiment is Negative. The current price of 1059.45 is above the 20-day moving average (MA) of 953.12, below the 50-day MA of 1062.59, and below the 200-day MA of 1295.10, indicating a bearish trend. The MACD of -52.77 indicates Negative momentum. The RSI at 38.46 is Neutral, neither overbought nor oversold. The STOCH value of 42.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LUXIND.

Lux Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRICOLLTD	71 Outperform	₹66.90B	31.48	―	0.32%	35.16%	14.52%
DOLLAR	69 Neutral	₹17.83B	16.86	―	0.82%	11.71%	14.14%
ICIL	63 Neutral	₹46.75B	28.60	―	0.74%	10.86%	-47.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ORIENTELEC	60 Neutral	₹38.44B	44.27	―	0.82%	6.63%	42.16%
SEPC	53 Neutral	₹13.11B	36.79	―	―	8.69%	51.66%
LUXIND	52 Neutral	₹28.04B	22.05	―	0.18%	16.32%	-20.97%

Lux Industries Ltd. Corporate Events

Lux Industries Clarifies Recent Surge in Trading Volume

Lux Industries Ltd. has experienced a significant increase in trading volume, prompting the National Stock Exchange of India to seek clarification. The company responded by confirming compliance with regulatory requirements and stated that there is no undisclosed or price-sensitive information affecting the recent volume surge.