KR Choksey's research report on Laxmi Organic Industries
Laxmi Organics Industries Ltd (LXCHEM) reported overall revenue of INR 8,799 Mn (+69.4% yoy / 2.3% qoq) below our estimates (down by ~4% qoq). However, the growth was observed in both the revenue segments where revenue from Acetyl Intermediates (AI) business stood at INR 5,338 Mn (+91.2% yoy / +0.7% qoq) and SI business revenue stood at INR 2,789Mn (+77.0% yoy / +5.0% qoq). EBITDA grew at INR 729 Mn by 14.5% yoy; however, it is contracted by 38.5% on a sequential basis amid rise in power and logistics expenses along with raw material price increased during the quarter. Net profit reported at INR 575 Mn (+58% yoy / -30% qoq) as against INR 364Mn in Q4FY21 and INR 821Mn in Q3FY22. EPS reported at INR 2.18 as against INR 1.38 in Q4FY21 and INR 3.07 in Q3FY22. The board of directors recommended a final dividend of INR 0.70 which is subject to approval from the shareholders.
We implied a PE of 35.0x to FY24E EPS and revise our target at INR 530/per share (Previous TP: INR 620) and retain our ‘BUY’ recommendation on the stock (upside 37.1%).
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