Top Trading Ideas: Lux Industries

The company recently posted its quarterly numbers which contained double-digit growth on every front.

Lux Industries Limited is engaged in the business of manufacturing and sale of knitwear. Its brands include Lux Cozi, Lux Venus, Lux Karishma, Lux Touch, Lux Bigshot and Lux Classic. The clothing company is a midcap company with a market cap of Rs. 13,848 crore. The company has strong financials and has reported higher than industry revenue growth and net income. Not only that, but the company has also witnessed an increase in market share from 2.36% to 5.12% in the last five years. This certainly shows that the company is on the right track with its business performance and is quite evident with its movement in the stock price.

The stock has performed exceptionally well by delivering awesome returns of 178% YTD. On a YoY basis, the stock has gained 205% and it has also gained 14.53% in three months. This shows that the stock is in no mood to stop its momentum. Lux industries recently posted its quarterly numbers which contained double-digit growth on every front. Strong management commentary regarding their business boosted investors’ confidence.

On Wednesday, the stock has logged a fresh all-time and is currently trading 8.82% up at Rs 4594.

The stock trades well above its key moving averages and RSI is going strong at 85. Huge volumes have been recorded in the last couple of days indicating higher institutional activity. The positive directional movement (+DMI) crossed the -DMI a few trading sessions back and currently it is well above it. It shows strong strength. The above parameters suggest that the stock is in super bullish mode and shows no signs of stopping as it heads into uncharted territory.

Considering the performance Lux Industries has shown, we can expect the stock to continue its momentum on the higher side. Traders can expect some good returns for the short to medium term as the technical analysis validate our point.