Shares of hosiery player Lux to get listed on NSE

Leading India hosiery player Lux Industries' shares will soon get listed on the National Stock Exchange. Currently, the company's shares are listed on the Calcutta and Ahmedabad stock exchanges but as per the company's annual report for 2014-15, shares were not traded on both these stock exchanges.

But brokers are of the opinion that the company’s shares may find takers on the NSE. Its rivals listed on the main bourses include Maxwell Industries trades at a price to earnings (PE) ratio of 62 times, Rupa & Co at a PE of 33 and Page industries at a PE of 67. Given the earnings per share of Rs 90 for March 2015, brokers expect Lux to start trading anywhere between Rs 3,000 and 3,500.

Founded in 1957, the company having over 100 products in its kitty, is a dominant exporter of innerwear and manufactures 1.75 crore pieces every month. The company’s sales witnessed its sales grow to Rs 909 crores in 2014/15 against Rs 871 crores in the previous year. Profit after tax grew by 44.15 percent to touch Rs 45.22 crores in 2014-15 against Rs 31.37 crores in 2013-14 and it clocked an EPS of Rs 90.

Enjoying a 20 percent share of the organised hosiery market, Lux products are retailed through five lakh retail outlets across the country. The company has been reporting sales growth over the last five years at a compounded annual growth rate ( CAGR) of 22 percent, while profit after tax has grown by 59.3 percent. Following its planned expansion strategy, Lux is setting up a manufacturing unit at Dankuni in West Bengal.