Accumulate Laxmi Organic Industries; target of Rs 206: Deven Choksey

Deven Choksey recommended accumulate rating on Laxmi Organic Industries with a target price of Rs 206 in its research report dated May 28, 2025.

Broker Research

May 28, 2025 / 10:46 IST

Accumulate

26 Aug, 2025 12:21

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Deven Choksey's research report on Laxmi Organic Industries

Laxmi Organic’s revenue came in at INR 7,097 Mn., down by 10.4% YoY (-9.7% QoQ), below our estimates, led by weaker volume growth. EBITDA stood at INR 590 Mn., down by 34.5% YoY, below our estimates driven by weaker volumes and contraction of gross margins. Adj. profit stood at INR 218 Mn., down by 50.9% YoY, below our estimates led by weaker operational performance. We have revised our FY26E/FY27E EPS estimates by -20.6%/-23.4%, as we bake in weaker growth momentum, lower price realization led by persistent pricing pressure and higher finance expense.

Outlook

We believe that the long-term growth drivers remain intact supported by the ramp-up of the fluorination platform at Lote. We value Laxmi Organic at 28.0x FY27E EPS, implying a target price of INR 206. We maintain our “ACCUMULATE” rating on the stock.

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