Laxmi Organic Industries Limited, founded in 1989, stands as a stalwart in the realm of specialty chemicals. Renowned for its Ethyl Acetate, Acetic Acid, and Diketene Derivative Products (DDP) manufacturing, the company’s significance transcends mere chemical production—it embodies tailored solutions and industry leadership.
The firm’s diverse portfolio doesn’t merely cater to chemicals; it resonates with global leadership across varied industries and geographies. Its operational prowess is evident in cost-effective technology platforms, bolstered by a resilient balance sheet and robust cash flows. Notably, its consistent share between domestic sales and exports (historically 30-40%) underscores reliability and global reach.
Venturing beyond numbers, this narrative delves into market intricacies, including supply chain dynamics and the burgeoning end product markets. Laxmi Organic Industries doesn’t just produce; it pioneers. This piece unravels the journey, examining its trajectory towards industry leadership, navigating through market complexities that shape its upward trajectory.
About Laxmi Organics
Laxmi Organic Industries Limited, established in 1989, specializes in crafting an extensive range of specialty chemicals. Focused on producing Ethyl Acetate, Acetic Acid, and Diketene Derivative Products (DDP), the company acquired the technology and business for DDP from Clariant Chemicals India Limited.
Operating across 30 countries and housing 11 offices in India, Laxmi Organic Industries showcases a robust product lineup. Its offerings span Acetyl Intermediates, Specialty Intermediates, and forthcoming Fluorine Intermediates, catering to diverse sectors like Pharmaceuticals, Agrochemicals, Coatings, Printing, Packaging, and more.
With a split of 54% business in India and 46% via exports, the company holds a strong international foothold, serving over 620 customers globally. Housing four manufacturing facilities and two distilleries in Maharashtra, Laxmi Organic Industries boasts a combined AI capacity exceeding 2,32,000 MTPA.
Investing in expansion, the company’s Lote Parshuram project, focusing on fluoro compounds, commenced in FY23, along with an acquisition of a significant plot in Dahej. Bolstering its market position, the company is channelling ₹255 crore into R&D and new initiatives. Holding the top spot in the AI and SI segments in India, the firm continuously innovates, backed by backward and forward integration strategies.
FY23 saw executive changes with Mr. Satej Nabar stepping down as CEO and Dr. Rajan Venkatesh assuming the role. Dr. Venkatesh brings nearly two decades of global chemical industry experience to drive the company’s future endeavors. This synopsis encapsulates Laxmi Organic Industries’ trajectory, underlining its innovative strides and expanding global presence.
Laxmi Organics Q3 Fy2024 Key Points and Summary:
- Laxmi Organic Industries declared their Q3 FY24 results on 24th January 2024.
- The topline of the company increased by 6.06%, reaching ₹694.3 crore in revenue.
- However, the profit experienced a slight decrease of 0.14% YoY, amounting to ₹27.19 crore.
- Compared to the previous quarter, the revenue grew by 6.44%, while the profit saw a significant increase of 153.79%.
- The selling, general & administrative expenses rose by 17.79% q-o-q and increased by 30.41% YoY.
- Operating income witnessed a notable increase of 117.26% q-o-q but decreased by 31.31% YoY.
- The EPS for Q3 FY24 stood at ₹0.97, marking a decrease of 4.9% YoY.
- Laxmi Organic Industries exhibited a -0.64% return in the last week, 7.07% return in the last 6 months, and -6.65% YTD return.
Shareholding Pattern Laxmi Organics
| Sep 2022 | Dec 2022 | Mar 2023 | Jun 2023 | Sep 2023 | |
| Promoters + | 72.51% | 72.50% | 72.50% | 72.39% | 72.39% |
| FIIs + | 0.45% | 0.45% | 0.47% | 0.48% | 0.48% |
| DIIs + | 1.62% | 1.65% | 1.73% | 1.54% | 1.55% |
| Public + | 25.42% | 25.40% | 25.30% | 25.59% | 25.58% |
| No. of Shareholders | 4,76,928 | 4,73,411 | 4,64,938 | 4,55,337 | 4,52,292 |
The shareholding pattern of Laxmi Organics showcases stability among major stakeholders from September 2022 to September 2023. Promoters maintain a dominant position, consistently holding around 72.5% of the shares. Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) display marginal fluctuations, with FIIs slightly increasing from 0.45% to 0.48%, while DIIs hover between 1.62% and 1.73% over this period.
The public shareholding remains relatively steady, ranging between 25.30% and 25.59%. Despite minor fluctuations, the overall number of shareholders experiences a slight decrease, moving from 4,76,928 to 4,52,292. This data suggests a consistent hold of major stakeholders and a relatively stable investor base throughout these quarters.
Laxmi Organics Share Price Target 2024 To 2030
Laxmi Organics Share Price Target 2024
| When | Maximum Price | Minimum Price |
| April 2024 | 240.90 | 209.48 |
| May 2024 | 237.34 | 206.38 |
| June 2024 | 245.88 | 213.81 |
| July 2024 | 243.43 | 211.67 |
| August 2024 | 253.16 | 220.14 |
| September 2024 | 263.29 | 228.95 |
| October 2024 | 258.13 | 224.46 |
| November 2024 | 268.45 | 233.44 |
| December 2024 | 271.14 | 235.77 |
In April 2024, Laxmi Organic Industries Ltd is expected to witness a maximum price of 240.90 and a minimum price of 209.48. As the months progress, both the maximum and minimum prices are anticipated to fluctuate, with December 2024 projecting the highest maximum price of 271.14 and the lowest minimum price of 235.77 for Laxmi Organic Industries Ltd. Throughout the year, investors will closely monitor these price movements to gauge the performance and potential of Laxmi Organic Industries Ltd in the market.
Laxmi Organics Share Price Target 2025
| When | Maximum Price | Minimum Price |
| January 2025 | 271.41 | 208.77 |
| February 2025 | 271.95 | 209.19 |
| March 2025 | 277.66 | 213.59 |
| April 2025 | 272.22 | 209.40 |
| May 2025 | 264.29 | 203.30 |
| June 2025 | 276.18 | 212.45 |
| July 2025 | 270.77 | 208.28 |
| August 2025 | 279.14 | 214.72 |
| September 2025 | 282.49 | 217.30 |
| October 2025 | 289.84 | 222.95 |
| November 2025 | 297.08 | 228.52 |
| December 2025 | 310.45 | 238.81 |
In January 2025, Laxmi Organic Industries Ltd is projected to experience a maximum price of 271.41 and a minimum price of 208.77. Throughout the year, these prices are expected to fluctuate, with February to April hovering around 270 for the maximum and 209 for the minimum. As the year progresses, both maximum and minimum prices steadily rise, reaching their peaks in December 2025, with a maximum of 310.45 and a minimum of 238.81 for Laxmi Organic Industries Ltd.
Laxmi Organics Share Price Target 2026 To 2030
| Year | Maximum Price | Minimum Price |
|---|---|---|
| 2026 | ₹454.91 | ₹318.44 |
| 2027 | ₹500.40 | ₹350.28 |
| 2028 | ₹700.56 | ₹350.28 |
| 2029 | ₹606.55 | ₹303.27 |
| 2030 | ₹788.51 | ₹551.96 |
The forthcoming years project a promising trajectory for Laxmi Organics’ share prices. The expected trends depict a consistent and substantial upward movement, indicating positive market sentiment and potential growth opportunities. Forecasts suggest a progressive climb from ₹454.91 in 2026 to ₹788.51 in 2030 for the maximum prices, portraying a buoyant market outlook. This upward momentum reflects evolving market dynamics, heightened demand for chemical products, and strategic advancements by the company.
Conversely, the projected minimum prices also exhibit an ascending trend, starting from ₹318.44 in 2026 and reaching ₹551.96 in 2030. This upward trajectory in the bottom range signifies a strengthening market foundation and potential stability within the company. However, these projections are speculative, contingent on various market variables and the company’s performance, serving as directional indicators rather than definitive outcomes.
Laxmi Organics ‘s Financial Condition (Last 5 Years)
| Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | TTM | |
| Sales + | 1,569 | 1,534 | 1,768 | 3,084 | 2,797 | 2,769 |
| Expenses + | 1,414 | 1,418 | 1,548 | 2,713 | 2,548 | 2,538 |
| Operating Profit | 155 | 117 | 220 | 371 | 248 | 232 |
| OPM % | 10% | 8% | 12% | 12% | 9% | 8% |
| Other Income + | 6 | 30 | 4 | 15 | 12 | 19 |
| Interest | 19 | 17 | 19 | 19 | 15 | 11 |
| Depreciation | 44 | 49 | 47 | 48 | 72 | 90 |
| Profit before tax | 98 | 81 | 158 | 319 | 173 | 150 |
| Tax % | 26% | 13% | 20% | 19% | 28% | |
| Net Profit + | 72 | 70 | 127 | 257 | 125 | 101 |
| EPS in Rs | 14.46 | 15.57 | 4.82 | 9.76 | 4.7 | 3.79 |
| Dividend Payout % | 0% | 11% | 10% | 7% | 11% |
Over the last five years, Laxmi Organics’ financial performance has been characterized by fluctuations but showcases a progressive growth trajectory. The sales escalated notably from 2019 to 2022, reaching a peak at ₹3,084 million in 2022, signifying a robust revenue upswing. However, in the subsequent year, sales experienced a slight dip to ₹2,797 million.
While expenses paralleled the sales growth, they remained well-managed, ensuring operational efficiency. Operating profit reflected this, with an increase to ₹371 million in 2022 from ₹155 million in 2019, though it regressed to ₹248 million in 2023. Despite these fluctuations, the operating profit margin remained relatively steady, averaging around 10-12%, signifying consistent operational efficacy.
Other income, though fluctuating, contributed positively to the overall income, showcasing additional revenue streams. However, the interest expenses witnessed a decline from ₹19 million in 2019 to ₹11 million in the trailing twelve months, indicating improved cost management.
The company’s net profit showed an upward trend until 2022, reaching ₹257 million, although it fell to ₹125 million in 2023. Earnings per share (EPS) exhibited volatility, from ₹14.46 in 2019 to ₹9.76 in 2022 and eventually decreasing to ₹3.79 in the trailing twelve months.
The dividend payout percentage varied between 0% and 11%, suggesting a conservative yet fluctuating dividend policy. The tax percentage also showed fluctuations, hovering between 13% and 28%.
In summary, while Laxmi Organics experienced periods of notable growth in sales, operating profit, and net profit, the recent years reflected slight declines. The company’s financial health seems resilient but prone to market dynamics, demanding a strategic approach to navigate potential challenges and sustain growth.
FAQS
Q: What is the current market capitalization of Laxmi Organic Industries Ltd?
A: As of 31st March 2024, the current market cap of Laxmi Organic Industries Ltd is ₹6,486 Crores.
Q: What is the stock’s current trading price?
A: The stock’s current trading price is ₹235.
Q: What are the highest and lowest prices the stock has reached recently?
A: The stock’s recent high and low prices were ₹ 321 / 222, respectively.
Q: What is the Price-to-Earnings (P/E) ratio of the stock?
A: The stock’s Price-to-Earnings (P/E) ratio is 64.5.
Q: What is the Book Value of Laxmi Organic Industries Ltd?
A: The Book Value of Laxmi Organic Industries Ltd stands at ₹53.0.
Q: What is the Dividend Yield for this stock?
A: The Dividend Yield for this stock is 0.18%.
Q: What is the Return on Capital Employed (ROCE) for Laxmi Organic Industries Ltd?
A: The Return on Capital Employed (ROCE) for Laxmi Organic Industries Ltd is 11.5 %.
Q: What is the Return on Equity (ROE) for this stock?
A: The Return on Equity (ROE) for Laxmi Organic Industries Ltd stands at 9.18 %.
Q: What is the face value of the company’s stock?
A: The face value of the company’s stock is ₹2.00.
Should one invest in Laxmi Organics?
Laxmi Organics exhibits a compelling yet multifaceted investment proposition, underscored by its niche in the specialty chemicals industry. Over the past years, its sales trajectory demonstrated an upward trend, reaching a peak of ₹3,084 crore in March 2022 before a slight dip to ₹2,797 crore in the latest trailing twelve months (TTM). Despite this dip, the company’s operational efficiency, gauged by ROCE (Return on Capital Employed) at 11.5%, maintains a solid standing within the industry.
However, this promising performance faces some inconsistencies. While the company’s sales growth and profitability metrics reflect resilience, the Earnings per Share (EPS) experienced fluctuations, declining from ₹9.76 in March 2022 to ₹3.79 in the TTM. This fluctuation might raise concerns about the company’s consistency in delivering shareholder value.
Comparatively, within the chemicals sector, Laxmi Organics stands favorably in terms of operational efficiency and sales growth. Yet, its EPS performance might lag behind some competitors. Investors contemplating investment in Laxmi Organics should conduct a deeper assessment of the company’s growth strategies, competitive positioning, and market dynamics.
Given the inherent volatility in the chemicals industry, it’s imperative for potential investors to consider a broader spectrum of factors. Evaluating industry trends, potential disruptions, technological advancements, and the company’s future plans are crucial components in assessing long-term investment viability. Seeking guidance from financial advisors and conducting an in-depth analysis of the company’s financials, market position, and growth prospects would better equip investors to make informed investment decisions that align with their risk tolerance and long-term financial objectives.
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