Lux Industries is an Indian Company manufacturing knitted apparels & selling under the brand Lux. It is an established player with 5000 rural sector reach & exporting to 46 countries worldwide. The company have famous brands Lux Cozi, Lux Karishma, Lux Touch, Lux Classic and manufacturing units in Kerala & Kolkata.
Indian knitwear sector is in growth mode due to the High Income capacity of Individuals, Brand Recognitions, Online Sales etc. This sector is providing 8% of the industry contribution and 2 percent of GDP. FDI attraction to this sector is a key driver of growth.
The company is in Revival mode of Sales due to the Covid lock-down lifting & arrival of vaccines. Coupled with the Online presence this company could yield higher returns on the stock price in coming quarters. In the latest quarter Sep 2020 results the company displayed 10% increase in Sales & 25% increase in Net Profits.
The invasion of multinational brands in Indian Retail Sector is a Threat to the company’s business.
The innerwear industry has growth support from rural & urban areas in India due to the mid-priced products of the company. The strong brand recognition with Celebrities being Brand Ambassador is a key uniqueness of the company. Adding all these this company is having a Multibagger potential in future.