KR Choksey's research report on Laxmi Organic Industries
Laxmi Organic Industries Ltd (LOIL) reported a flattish revenue of INR 7,336 Mn (-3% YoY/+0.1% QoQ). The revenue sluggishness was due to overall macroeconomic headwinds with inventory destocking and inflationary environment in Europe. EBITDA for the quarter is reported at INR 773 Mn (-23% YoY/+27.4% QoQ). EBITDA margin stood at 10.5% (-273 bps YoY,226 bps QoQ). For the quarter, the net profit declined by -40.5% YoY and increased 57.9% QoQ to INR 383 mn, Net profit margin reported at 5.2% ( -329 bps YoY, 191 bps QoQ). EPS stood at INR 1.44 in Q1FY24 compared to INR 2.44 in Q1FY23 and INR 0.92 in Q4FY23.
Outlook
We revise our target price at INR 302 by assigning a PE multiple of 22.0x to FY25E EPS (previous TP: INR 343) and revising our recommendation from ‘BUY’ to ‘ACCUMULATE’ (upside 11.8%).
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