This post is not for traders who want to trade with stop loss. This is for long term investors who wants to buy fundamentally strong beaten down names at a good entry point.
LUXIND
Lux Industries Limited was incorporated in 1995 and has emerged as one of the largest players in the hosiery business having a market share of 14% of the organised industry. It is the largest mid-segment hosiery enterprise in India. The Company has more than 100 products across 16 brands to address the growing need of customers. Company’s products are available in ~4,50,000 retail points spread across India.
Why is it a good buy right now?
Average ROE (Return on Equity) for last 3, 5, 7 and 10 years is greater than 30%
5year CAGR (Compound annual growth rate) Sales and Profit at 16% and 40%
TTM (Trailing 12 months) Sales and Profit growth at 30% and 67%
Promoter Holding at 74% (greater than 45% is good)
Dividend Yield at 0.49% (consistent dividend payer)
Debt to equity at 0.12 (less than 1 is good), Interest Coverage at 51.5 (greater
than 3 is good), Current ratio at 2.78 (greater than 1.5 is good), FCF to CFO at 71%
(company won’t have to raise debt for expansion)
Debtor Days came down from 132 in 2018 to 85 in 2021
Current PE at 19.4 is much lesser than 10-year average PE of 31
It is currently trading at a long-term support point. If anyone consider it for buying, put only 3% of your capital right now, buy with another 3% if it falls another 40% and invest the rest 4% (don't invest more than 10% of your entire capital in one stock) when the share closes at a 52 week high.
LUXIND
Lux Industries Limited was incorporated in 1995 and has emerged as one of the largest players in the hosiery business having a market share of 14% of the organised industry. It is the largest mid-segment hosiery enterprise in India. The Company has more than 100 products across 16 brands to address the growing need of customers. Company’s products are available in ~4,50,000 retail points spread across India.
Why is it a good buy right now?
Average ROE (Return on Equity) for last 3, 5, 7 and 10 years is greater than 30%
5year CAGR (Compound annual growth rate) Sales and Profit at 16% and 40%
TTM (Trailing 12 months) Sales and Profit growth at 30% and 67%
Promoter Holding at 74% (greater than 45% is good)
Dividend Yield at 0.49% (consistent dividend payer)
Debt to equity at 0.12 (less than 1 is good), Interest Coverage at 51.5 (greater
than 3 is good), Current ratio at 2.78 (greater than 1.5 is good), FCF to CFO at 71%
(company won’t have to raise debt for expansion)
Debtor Days came down from 132 in 2018 to 85 in 2021
Current PE at 19.4 is much lesser than 10-year average PE of 31
It is currently trading at a long-term support point. If anyone consider it for buying, put only 3% of your capital right now, buy with another 3% if it falls another 40% and invest the rest 4% (don't invest more than 10% of your entire capital in one stock) when the share closes at a 52 week high.