Prabhudas Lilladher's research report on Laxmi Organic Industries
Laxmi Organic Industries (LXCHEM) reported a topline of Rs 7.9bn, marking an 8% YoY growth driven by a 14% increase in volume. EBITDAM improved by 300bps YoY due to lower overheads. However, the contribution from exports decreased by 500 basis points YoY, primarily due to weak global demand in the pharma and agro sectors. The Company's Fluoro intermediate plant with a peak revenue capacity of Rs 2bn is ready, but it will take another three years to ramp up. Additionally, the Dahej project has received its first approval, and construction at the site is expected to commence soon. As a result of the ramp ups and concerning macro environment of demand, we remain cautious on the stock.
Outlook
The stock currently trades at 35x FY26 EPS. Using SOTP, we value it at Rs 206, implying ~20% downside from here. We recommend a Sell rating on the stock.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
