Laxmi Organic Q4 Results Review - Projects Ramp Ups To Take Time: Prabhudas Lilladher

Prabhudas Lilladher Report

Laxmi Organic Industries Ltd. reported a topline of Rs 7.9 billion, marking an 8% YoY growth driven by a 14% increase in volume. Ebitdam improved by 300 bps 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 2 billion 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.

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.

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