KR Choksey's research report on Laxmi Organic Industries
Laxmi Organic’s revenue beat our estimates significantly due to strong double digit volume growth. EBITDA beat our estimates significantly due to higher-than-expected gross profit. We increase our FY26E EPS estimates to INR 8.2 (previously: INR 7.8) as we believe favourable geographical mix and product mix will continue supported by the Specialty segment and demand in industrial solutions and pharma segments remains steady. We increase the PE multiple to 36.0x (previously: 32.5x) showing our optimism as the company is scaling up its fluoro-intermediates site which will begin commercial production in H2FY25E, expected to drive future growth and diversify its product offerings.
Outlook
Therefore, we arrive at a target price of INR 297/share (previously: INR 253/share) and upgrade our rating to “ACCUMULATE” from “HOLD”.
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