Laxmi Organic Q3 Results Review - Performance Disappoints Yet Again: Prabhudas Lilladher

Prabhudas Lilladher Report

Amidst a challenging macro environment, Laxmi Organic Industries Ltd. reported 6% YoY growth in revenue to Rs 6.9 billion on the back of 17% volume growth.

However, Ebitdam declined 90 basis points YoY to 7.5%. The company is all set to complete project at Lote by FY24 end which would take three years for ramp up.

At Dahej, the Rs 7.1 billion project is on track and is expected to be completed within 18-24 million post approvals. Lote also is expected to generate revenues from H2 FY25 only. As a result of the ramp ups and concerning macro environment of demand, we cut our FY25/26 earnings per share estimates by 27%/24% respectively.

The stock currently trades at 34 times FY26 EPS. Using SOTP, we value it at Rs 221, implying ~18% downside from here. We recommend a 'Sell' rating on the stock.

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