Buy Laxmi Organic Industries; target of Rs 310: Anand Rathi

Anand Rathi is bullish on Laxmi Organic Industries has recommended buy rating on the stock with a target price of Rs 310 in its research report dated May 22, 2023.

Broker Research

May 24, 2023 / 17:36 IST

Buy

26 Aug, 2025 12:21

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Anand Rathi's research report on Laxmi Organic Industries

Laxmi Organic Industries Limited has reported revenue de-growth of 16.7% YoY at Rs7,332 million during Q4-FY23 as against Rs8,799 million in Q4-FY22. The de-growth was primarily due to a mis of subdued demand lower realisation. On exports front, the volumes remained strong with Acetyl business contributing 40% to sale and Specialty business contributed 50%. The company’s operating margin stood 8.3% at Rs607 million in Q4-FY23 as against 9.7% at Rs851 million in same quarter previous year, a contraction of 139 basis points. The decline in margins was due to lower realisations coupled with rising operating costs. The profit after tax margins for the company stood 3.3% at Rs239 million in Q4-FY23 as against 8% at Rs704 million in Q4-FY22.

Outlook

The Company is gradually de-risking businesses with diversified large customer base and portfolio across industry as well as presence across various geographies. Also with gradual improvement in share on new high margin products and ramp up of new capacities bodes well for the company in medium to long term. We maintain our Buy rating on the stock with revised target price of Rs310 per share.

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