Why investors should keep Lux Industries on their radar

In an interview to CNBC-TV18, Vaishali Parekh of Prabhudas Lilladher and Mayuresh Joshi of William O' Neil, shared their reading and outlook on specific stocks, sectors and markets.

Speaking on Lux Industries, Parekh said, “Support for the stock comes in at Rs 1800-2000 levels. I would recommend accumulating the stock from here on because the stock has corrected from Rs 4000 and currently trading around Rs 2100. So there is a good opportunity to add on here.”

According to Joshi, “Lux Industries has an excellent earnings rating. The company has a market share of 15 percent in the organised men’s innerwear market, 30 crore pieces coming through 7 factories and we are expecting strong cash flows to continue. So this is one stock that investors can keep on radar but it has to pick up price strength from the current levels.”

Speaking about Bank of Maharashtra Joshi said, “It is a tough ask specifically with these PSU banks. They have gone through an ordeal in terms of elevated NPA growth at the beginning of the COVID cycle a couple of years back, then a strong asset recognition cycle happened in the ensuing quarters which meant that the provision coverage kept on increasing higher. So I think investors are better off with the larger private sector banks once the market stabilizes.”