Lux Industries Ltd. (LUXIND) AI Stock Analysis

• Market Cap: ₹26.62B
• Dividend Yield: 0.18%
• Average Volume (3M): 1.88K
• Price to Earnings (P/E): 64.8
• Beta (1Y): 1.52
• Revenue Growth: 16.32%
• EPS Growth: -20.97%
• Country: IN
• Employees: 3,364
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 4.29
• 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): 38.1
• Revenue Forecast (FY): ₹28.77B

• Rating: 52 Neutral
• Price Target: ₹893.00 ▼(-15.71% Downside)
• Action: Reiterated Date: 11/22/25
• Date: Action: Reiterated 11/22/25

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

Consistent revenue growth

A sustained revenue increase (12.88% year) indicates expanding market penetration and product demand in India. This durable top-line growth supports scale advantages, steadier production planning and potential margin recovery over quarters if the company sustains distribution and brand reach.

Prudent leverage and strong equity base

A high equity ratio and low debt-to-equity reflect conservative capital structure and financial stability. This durable balance-sheet strength provides flexibility for investment, absorbing shocks, or funding working capital without high interest burden, improving long-term resilience.

Improved operational margins (EBIT/EBITDA)

Rising EBIT/EBITDA margins signal better operational efficiency or favorable product mix, which is more enduring than one-off gains. If cost controls and higher-margin SKUs are maintained, improved operating profitability supports sustainable earnings power and reinvestment capacity.

Negative Factors

Negative free cash flow

A large negative free cash flow despite positive net income shows cash conversion weakness and working-capital strain. Over months this limits capacity to fund capex, reduce debt, or return capital, raising financing needs and increasing execution risk around growth initiatives.

Sharp gross margin decline

A severe drop in gross margin suggests rising input costs, pricing pressure, or mix shift toward lower-margin products. Unless structural cost controls or price pass-throughs are implemented, this erosion can sustainably compress profitability and constrain the benefits of revenue growth.

Weaker ROE and EPS performance

Declining ROE and sharply negative EPS growth point to lower shareholder returns and profitability per share. Persistently weak returns can reduce reinvestment efficacy and limit strategic options, making it harder to finance growth organically or attract long-term capital.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• 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 947.40, above the 50-day MA of 981.28, and below the 200-day MA of 1247.05, indicating a bearish trend. The MACD of -27.93 indicates Positive momentum. The RSI at 35.37 is Neutral, neither overbought nor oversold. The STOCH value of 47.29 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	₹71.19B	31.66	―	0.32%	35.16%	14.52%
DOLLAR	69 Neutral	₹15.09B	27.11	―	0.82%	11.71%	14.14%
ICIL	67 Neutral	₹51.97B	57.24	―	0.74%	10.86%	-47.15%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ORIENTELEC	60 Neutral	₹38.81B	36.16	―	0.82%	6.63%	42.16%
SEPC	53 Neutral	₹11.28B	31.63	―	―	8.69%	51.66%
LUXIND	52 Neutral	₹26.62B	64.82	―	0.18%	16.32%	-20.97%

Lux Industries Ltd. Corporate Events

Lux Industries Says No Undisclosed Developments Behind Surge in Trading Volume

Lux Industries has responded to a query from the National Stock Exchange of India after a significant increase in trading volume was observed in its shares. The company told the exchange it is fully compliant with disclosure regulations and has been promptly reporting all events and price-sensitive information.

Management added that, while it has also noticed the recent volume spurt in its stock, there is no undisclosed price-sensitive information, impending announcement, or corporate action that would explain the movement. The clarification aims to reassure investors and regulators that the trading activity is not driven by non-public information and that the company has no additional disclosures at this time.