Lux gets ‘cozy’

Lux Industries, which sells apparels and accessories under the brand name of “Lux” and “Lux Cozy” is most certainly the star of the day.

It has hit a new 52-week high within minutes of the opening bell at Rs.1316.60.

The stock is reacting to its performance for Q1Fy18. The bumper numbers were thanks to the GST implementation, where distributors increased ordering. The company posted a 43% (YoY) jump in revenue at Rs.260 crore. EBITDA rose 61% at Rs.32 crore and margins increased from 11% to 12.4%. The company’s net profit rose by a sharp 65% at Rs.16 crore. The company was warned though that Q2 might not be as good as the first few weeks of July saw lower offtake due to 1^st July GST starting.

Lux Industries were always listed on the Calcutta and Ahmedabad stock exchanges but saw no trades due to lack of liquidity. It was in Dec’15 that its shares got listed on BSE and NSE at Rs.3342 and within minutes of listing was locked on the upper circuit.

Founded in 1957, the company has more than 100 products in its kitty and is the largest Indian exporter of innerwears and manufactures 1.75 crore pieces every month.