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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.
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