Volume recovery rather than margin resilience to determine the stock performance going forward
Value innerwear players, Dollar Industries and Rupa & Company, posted strong double-digit earnings growth YoY in Q2FY22. Volume growth on account of increased demand, following the unlocking measures as well as price hikes, helped deliver earnings growth. Also, given the essential nature of the segment, it is likely to outperform in a scenario of lockdowns or restrictions, if there is a third wave of COVID-19. Any weakness in the stock price would be an opportunity to add both Dollar and Rupa in the portfolio. Watch the video to find out which stock you should bet on.
Both Rupa and Dollar have similar business models and return ratios and are likely to benefit from the shift towards organised players
Sales of Lux Industries, Dollar Industries, Rupa & Co. grew at a decent pace in the September quarter, helped by sales of economy range products and growth in smaller urban centres
Besides bolstering Lux’s consolidated revenues, the reorganisation will curtail overhead costs and lead to margin expansion.
Clovia, ...
Speaking to CNBC-TV18, Ajay Patodia of Lux Industries gave a growth guidance of 12-15 percent for fiscal year 2017 and said that the company is looking for inorganic growth and plans to foray into women‘s wear.