LUXINDLux Industries Limited Forensic Risk Analysis

Garments & Apparels
Risk ClassWatch
Market Cap₹2,673 Cr
Primary DriverEarnings Quality
Flagium AI Risk Score
Early signs of stress detected. Not yet widespread, but initial deterioration is visible.
30 / 100
-5 QoQ
Improving
Sentinel Insight

Financial profile remains stable for now. Pressure is receding in profitability and earnings quality. This suggests the risk profile is currently stabilizing. Risk levels are improving.

87.5th %ile (Sector)Accel: +0 Qtrs
Updated2026-06-02
Market View
₹1,432.7▲1.16%
PeriodQ4 FY26

Score Waterfall
Absolute contribution points of each forensic pillar to the final risk score. Derived from: Sector Baseline + Active Penalties - Mitigation Buffers.

Earnings Quality
+6.6 pts
Stability Adjustment
+23.0 pts
Final Composite Risk30 / 100

Investment Risk Thesis

Historical Trend

Current risk score has risen from 7 → 30 over 12 quarters.

Expected Direction
🟢 Improving
Primary Deterioration Drivers
  • Margin Compression
  • Inventory Stress
  • Industrial Margin Stress
What to Watch Next Quarter
  • Operating profit margins
  • Inventory turnover
  • Operating cash flow

Active Risk Objects (7)

CriticalHigh
Margin Compression
📊 Earnings QualityAnnualActive for 3 Years
More Detail
Impact Weight15/15
MomentumPersistent
Last SignalQ3 FY2026
Operating margin declined by 4.0 bps YoY for two consecutive quarters.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Profit Collapse
📊 Earnings QualityQuarterlyActive for 3 Qtrs
More Detail
Impact Weight8/15
MomentumDecaying
Last SignalQ3 FY2026
LUXIND: Net Profit collapsed by 60.3% from FY2025 Q3 to FY2026 Q3.

"Earnings quality is stabilizing. The reliance on non-operational items is receding."

Industrial Margin Stress
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight12/15
MomentumPersistent
Last SignalQ3 FY2026
LUXIND: EBITDA margin compressed by 4.0 bps YoY.

"Margins are in freefall. Operating costs are growing significantly faster than revenue."

Inventory Stress
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight15/15
MomentumAccelerating
Last SignalQ2 FY2026
Inventory growth (41.6%) significantly outpaced revenue growth (13.4%).

"Stock is piling up in the warehouse. Inventory turnover is slowing down dangerously."

Cash Conversion Deficit
📊 Earnings QualityAnnualActive for 1 Years
More Detail
Impact Weight6/15
MomentumAccelerating
Last SignalFY2026
LUXIND: OCF below Net Profit in 2/3 recent years.

"Cash conversion is dangerously low. Operational cash flow is significantly trailing reported PAT."

Operating Leverage Stress
📊 Earnings QualityAnnualActive for 4 Years
More Detail
Impact Weight10/15
MomentumPersistent
Last SignalQ4 FY2026
Expenses are consistently growing faster than revenues, creating operational pressure.

"Debt levels are creeping up. Monitor for signs of excessive borrowing for non-core activities."

Working Capital Expansion
💧 Liquidity & CoverageAnnualActive for 2 Years
More Detail
Impact Weight10/15
MomentumAccelerating
Last SignalQ2 FY2026
Working capital expansion detected: Receivable days increased by 35.3%.

"Early signs of working capital expansion. Receivable or inventory days are creeping up."

Risk Trajectory
Historical 12-quarter risk trend (Q-11 to Q0) followed by a 2-quarter predictive funnel (Q+1, Q+2).
Loading Chart
Resilience Matrix
Diagnostic benchmarking comparing structural sensitivity and risk buffers against sector medians.
MetricValuevs SectorSignal
Volatility (σ)4.275.02✅ RESILIENT
Sensitivity (ε_s)11.00✅ RESILIENT
Escalation Prob.5%5%✅ NEUTRAL
Safety Buffer+36.0+56.0📈 CRITICAL
Forensic Benchmark Context: Garments & Apparels (n=17 peers)

Correlation Analysis
Visualizing the relationship between stock price movement and structural risk objects.

Loading Chart
Share Price
Risk Score (0-100)
Market Performance
₹1,432.7(+1.16%)
1M Divergence+0.2%
1 Week+3.11%
1 Month+2.47%
6 Months+22.99%
1 Year-5.88%
2 Year-1.3%
3 Year-4.45%
Sector Average (1M)+2.27%
Sentinel Forensic Assessment
ALGORITHMIC RISK PROFILE • NON-ADVISORY

The risk profile is Early Signals and currently improving. Recent structural triggers in earnings quality suggest a building pressure on the underlying framework. Material forensic traces are visible in operational margins and profitability metrics, indicating a progressive erosion of structural stability. Initial structural recovery is visible; monitor for a sustained return to resilience.

LUXIND • MARKET STRUCTURE

Stage 1 — Accumulation

The company is in a foundational phase. Risk metrics are stabilizing as the company builds a base for potential future fundamental improvement.

Stage Transition Prob.87%
Trend QualityDeveloping
Phase Progression
Phase Progression Score85%
Readiness LabelHigh (Phase Transition Imminent)
Probability of Advancing87%
CoinTree Momentum
Composite Z-Score+1.2899σ
Strong positive momentum leadership
Universe Rank
A cross-sectional rank of this stock's composite momentum score compared to all other tracked equities in the universe. A rank of #1 of 1035 means it has the strongest overall price momentum in the market.
#173 of 2716
Top 6.37% in momentum strength
Timeframe Sparklines
1W+3.1%
1M+2.5%
6M+23.0%
Weinstein Indicators
150 DMA₹1,145.34
200 DMA₹1,186.63
150 DMA Slope+1.2878%Rising
Relative Strength+28.48%Leading
Relative Turnover (RTR)1.6940
ParticipationHealthy

PEER COMPARISON

Ranked comparison against sector peers

This company shows higher risk compared to the Sector Mean (10).
ARVINDArvind Limited
5 Risk
Sector %ile19th
Delta-5
Active Flags10
Accel+0
Earnings Quality

Stable

LUXINDLux Industries Limited
30 Risk
Sector %ile88th
Delta-5
Active Flags7
Accel+0
Earnings Quality

Watch

GOKEXGokaldas Exports Limited
36 Risk
Sector %ile94th
Delta+5
Active Flags26
Accel+1
Earnings Quality

Watch

* Peer comparison is based on risk signals, not valuation or returns.

Risk Profiles

Solvency
10100th %ile
VS Sector Median (8.5)
Governance
10100th %ile
VS Sector Median (8.5)
Earnings Quality
5.656th %ile
VS Sector Median (8.5)
Balance Sheet Stress
10100th %ile
VS Sector Median (8.5)
Competitive Position
10100th %ile
VS Sector Median (8.5)
Growth Sustainability
10100th %ile
VS Sector Median (8.5)

Deterioration Timeline

2026

Operating Leverage Stress

2026

Operating Leverage Stress

2026

Margin Compression

2026

Industrial Margin Stress

2026

Operating Leverage Stress

2026

Margin Compression

2026

Industrial Margin Stress

2026

Inventory Stress

2026

Working Capital Expansion

2026

Industrial Margin Stress

2026

Operating Leverage Stress

2026

Margin Compression

2026

Cash Conversion Deficit

2025

Industrial Margin Stress

2025

Working Capital Expansion

Key Financials (INR Cr)

PeriodRevenueNet ProfitOCFDebt
FY20262,961106-149580
FY20252,613165-81287
FY20242,345126240189
FY20232,398137181240