Laxmi Organic Q1 Results Review - Guides FY25-28 Capex Plan: Prabhudas Lilladher

Prabhudas Lilladher Report

Laxmi Organic Industries Ltd. reported lower-than-estimated topline of Rs 7.2 billion, marking a 2% YoY & 9% QoQ decline, primarily due to the annual shutdown at Site 1. Q4 FY24 included one-time gain of Rs 100 million on account of loss of profits for FY22. Excluding that, Ebitdam is flat QoQ.

Specialties segment saw growth of 5% QoQ and 20% YoY. The company has charted out a Rs 11 billion capex over FY25-28 with the aim of doubling its revenue, tripling its Ebitda and raising its return on capital employed to 20% by FY28.

The stock currently trades at 35 times FY26 EPS. Using SOTP, we value it at Rs 206, implying ~20% downside from here. We recommend a ‘Sell’ rating on the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.