This multibagger stock rose over 105% in six months, what do you have?

Multibagger Stock: Shares of Lux Industries have given multibagger returns this year (Year-to-Date or YTD). The stock has gained over 131% so far in 2021. Multibagger stock has gained over 105% in the span of six months alone. Brokerage firm Anand Rathi believes that this stock is likely to remain bullish even further.

Lux’s Q2 FY22 has surpassed Anand Rathi’s estimates as net profit and revenue registered a growth of 50% and 25% year-on-year (YoY). However, H1FY22 working capital was higher (160 days) due to seasonal nature of business, which is expected to decrease by the end of the year.

Anand Rathi says, “On its profitable growth path, we are excited about the long-term growth prospects of Lux due to its strong brand equity, launches and long-standing operations in innerwear. With H1FY22 outpacing our estimates, we grow our FY22e/FY23e revenue by 2%/3% and EPS by 5%/6%.”

The brokerage has upgraded its rating on Lux Industries to ‘Buy’ with a higher target price of ₹5,322. However, it sees slow growth in the premium range, intense competition and rise in raw material prices as key risks.

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