What is the reason to create 3 verticals in this qtr results?
Vertical A - B - C
Are they going to seperate all 3 verticals? Promoters are seperating? Any views are welcome
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The reason for stock tanking by more than 60% from ath is corporate governance issues and not just high input cost.
The proposed manufacturing facility (that includes a warehouse) will come up at Jagdishpur, on the suburbs of Kolkata. Focus will be on women and the kidswear segments. Capex funds will be generated through internal accruals and the facility is expected to be completed over the next 18 months.
“We have plans to expand offerings in ladieswear and enter the kidswear segment. For that, we are planning a new manufacturing unit. In two years, post commissioning of the new unit, we expect an incremental addition of ₹400 crore to our turnover,” Saket Todi, President (Marketing), Lux Industries, said.
^ I was looking for how much the Jagdishpur facility will add to the topline
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Have entered the stock at record low valuation , reason being it trades a record low valution seems like a cyclical stock where margins depends on cotton prices and peak margins have been 20% a year at current sales it amounts to 400cr ,that gives it a pe of under 10.
I feel there is no survival issue for this company as there is hardly any debt ,only thing which is a negative for me is debtor days and the how debtors are increasing YoY.Which makes it clear this is not a great business but paying pe of 30 right now at its lowest for a brand which is known by everyone in the country does seem cheap to me.
Disc:invested as a cyclical bet recently.
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Pulled the brand-wise revenue numbers from investor presentations:
- Lyra, ONN and Premiums look to be the future growth drivers
- Cozi, GenX and Venus are slowing down
- One8 is pretty much dead
Disc.: invested
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1)It is extremely underpriced trading at a pe of 10 when margins are 15 to 20 % when cotton prices are in ther favour.i also see peers like rupa has started gaining as well ,it is hard to track cotton prices but maybe there may be a possibility of tailwinds in the future.
2)I think the prices fell because fii and dii were selling now according to screener only 4.88% shares are held by dii out of which most of it is held by lic ,they haven’t sold a single share since sep 2021.So i Guess someone maybe fii and dii starting buying as the volumes are huge.
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