Laxmi Organics Share Price Target 2025, 2027, 2030
A leader in India’s chemical market, Laxmi Organic Industries Ltd is well-respected for its sustainable practises, diverse product line, and dedication to quality.
Since its inception in 1989 the firm has grown to become a world-renowned producer of a wide range of chemical intermediates and speciality chemicals.
As investors we analyze the balance sheet of various companies listed in stock market and forecast share price targets. In this article we will try to find Laxmi Organics Share Price Target 2025, 2027, 2030, 2040.
| Company Name | Laxmi Organics Industries Ltd. |
| Share Name | LXCHEM |
| Sector | Chemical Industry |
| Headquarters | Mumbai |
| Foundation | 1989 |
| Key Person | Ravi Goenka (CMD) |
| Market Cap | 7182 Crores INR |
| Revenue | 2693 Crore Rs |
| Official Website | Laxmi Organics Website |
Primary Operation of Laxmi Organics Industries Ltd.
Key chemical intermediates, including acetyl and specialty intermediates as well as performance chemicals, are Laxmi Organic Industries’ forte.
The pharmaceutical, agrochemical, dye, flavour, and fragrance industries, among others, rely heavily on these compounds in their production processes.
Laxmi Organic Share
Laxmi Organic Share is listed on both Bombay Stock Exchange(BSE) and National Stock Exchange(NSE).
Laxmi organic share price hit its 52 Week High of Rs 316.70 and its 52 week low has been Rs 220.50. Company has a price-to-earnings ratio of 76.34 as of December 8, 2023, which is 1.29% higher than the median range of 33.31 times for its peers.
Laxmi Organics Share Price Target 2025
SHARE HOLDING PATTERN (%)
| Particulars | Jun-23 |
|---|---|
| Promoters | 72.4% |
| FIIs | 0.5% |
| DIIs | 1.5% |
| Others | 25.6% |
| Total | 100% |
Laxmi Organics Industries Ltd. SWOT Analysis:
Strengths
- Positive Trend: Stock price exceeds short, medium, and long-term moving averages.
- Low Debt Company.
- Improving Book Value per share over the past two years.
- No Promoter Pledge.
- Increasing shareholding by FII/FPI or Institutions.
Weakness
- Revenue and profit experience a downward trend.
- Quarterly net profit has declined with a decreasing profit margin.
- Low Piotroski Score : Companies with weak financials
- There’s a significant decrease in net profit over the past 12 months.
Opportunity
- High Momentum Scores (Technical Scores greater than 50) – 319.5% returns for Nifty 500 over 5.1 years
- RSI indicating price strength
Threats
- None
Also Read : Yes bank share price target
Laxmi Organics Share Price Target 2025, 2026, 2027, 2028, 2029, 2030, 2040, 2050
| Year | First Target | Second Target |
|---|---|---|
| 2024 | 320 | 335 |
| 2025 | 345 | 370 |
| 2026 | 380 | 420 |
| 2027 | 425 | 445 |
| 2028 | 465 | 505 |
| 2029 | 520 | 590 |
| 2030 | 620 | 705 |
| 2040 | 1260 | 1405 |
| 2050 | 2600 | 2900 |
Result Highlights of Q1FY24:
- Laxmi Organic Industries Ltd (LOIL) reported a flattish revenue of INR 7,336 Mn (-3% YoY/+0.1% QoQ). The revenue sluggishness was due to overall macroeconomic headwinds with inventory destocking and inflationary environment in Europe.
- EBITDA for the quarter is reported at INR 773 Mn (-23% YoY/+27.4% QoQ). EBITDA margin stood at 10.5% (-273 bps YoY,226 bps
QoQ). - For the quarter, the net profit declined by -40.5% YoY and increased 57.9% QoQ to INR 383 mn, Net profit margin reported at 5.2%
( -329 bps YoY, 191 bps QoQ). - EPS stood at INR 1.44 in Q1FY24 compared to INR 2.44 in Q1FY23 and INR 0.92 in Q4FY23.
Revenue impacted due to multiple macroeconomic headwinds:
In Q1FY24, Laxmi Organics reported a stagnant revenue of INR 7,336 million with a flattish growth. The revenue remained flat as compared to the previous quarter and witnessed a marginal decline of 3 YoY%.
The revenue declined due to lower realization and destocking of high channel inventory across the chemical manufacturers coupled with weak exports due to inflationary environment in Europe. Moreover, the company’s exports were impacted by the inflationary environment in Europe.
Update on Capex & R&D:
In fluorochemistry, the asset acquired from Miteni have now been successfully relocated to Maharashtra. The company encountered delays and cost overruns due to rising freight costs and Covid led delays during the relocation of plant. LOIL has identified its first product for this facility and is working with an agrochemical company for launch for their product in 2026.
The company is currently undergoing capacity ramp up for this unit and FY24 is expected to have sample productions and commercial production will begin FY25 onwards.
However, the delays and cost overrun has led to a capex of INR 550 crores for commercialization of this unit. We believe this high cost overrun to impact the asset turn and ROCE of this unit.
The Dahej factory will also see capital expenditures of INR 710 crores over the next three years, according to the business.
Leveraging factors for capital expenditures and future growth include the changing global supply chain with China+1, expanding end markets, and a resilient Indian market.
Anhydrides, ester, and aldehydes would make up the Essentials BU, while diketene and ketene derivatives would make up the Specialties BU, and a 20% land acquisition at Dahej would be necessary for the capex.
KEY FINANCIALS OF LAXMI ORGANICS INDUSTRIES LTD.
| INR millions | FY21 | FY22 | FY23 | FY24 EXPECTED | FY25 EXPECTED |
|---|---|---|---|---|---|
| Revenue | 17684 | 30843 | 27966 | 30549 | 36660 |
| EBITDA | 2167 | 3676 | 2445 | 3510 | 5870 |
| PAT | 1271 | 2574 | 1246 | 1919 | 3637 |
| EPS (INR) | 5.6 | 9.7 | 4.7 | 7.2 | 13.7 |
| EBITDA Margin (%) | 12.3% | 11.9% | 8.7% | 11.5% | 16.0% |
| NPM (%) | 7.2% | 8.3% | 4.5% | 6.3% | 9.9% |
Laxmi Organic Share Price Target 2024
The ROEC trend of Laxmi Organic industries ltd does not give much confidence. Its return on capital has declined from 26% to 9.5% over the past 5years. Company is investing more capitals but the revenue is declining. That means that the usiness is losing its competitive advantage and burning more money than before.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2024 | ₹320 | ₹335 |
Laxmi Organic Share Price Target 2025
Laxmi Organic Industries has made a significant presence in both international and domestic markets. It has become a trusted chemical supplier for companies that need chemicals for manufacturing of their goods.
Laxmi Organic Industries is also investing heavily in research and development to stay ahead of its competitors. These are some really good long term fundamentals.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2025 | ₹345 | ₹370 |
Laxmi Organic Share Price Target 2026
Predicting the Laxmi share price target 2026 is like predicting the weather. In long term it will depend on a lot of factors like economic conditions, industry trends, and company’s performance, but its always a bit uncertain. This company has average fundamentals, and its share price is currently heading towards bottom. It is expected to bounce back hence we would recommend you hold on to it till 2026.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2026 | ₹380 | ₹420 |
Laxmi Organic Share Price Target 2027
Laxmi organic industries ltd is getting its business from 45 countries apart from India. It contributes 40% of the company’s overall income. The demand for company’s chemicals is rising in India and overseas. Thanks to the global operations and good orders expected from the foreign countries it is expected to grow in the long term. We expect Laxmi organic industries ltd target 2027 to be 425 and 445.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2027 | ₹425 | ₹445 |
Laxmi Organic Share Price Target 2028
Started as a small scale manufacturer in 1989, Laxmi organics has grown tremendously to become the largest chemical manufacturer in India today. Owing to advanced R&D capabilities and strong manufacturing practices, their steady growth path has not only strengthened their prominence in the country but also made them famous globally. In fact, Lakshmi Organics benefits greatly from its specialties as it allows them to cater to the needs of different industries as well as pursue their growth story.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2028 | ₹465 | ₹505 |
Laxmi Organic Share Price Target 2029
Lakshmi Organics has a chance to become a major player in its market segment with its new Maharashtra plant, and is certainly going to see significant growth in revenues and profits. Plus, greater production capacity means they will be able to meet their customers’ demands more effectively—always, on-time delivery has been Laxmi Organics number one goal! We’re really looking forward to the growth in long term.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2029 | ₹520 | ₹590 |
Should you Buy Laxmi Organics Shares ?
In short term, the Laxmi organics may not give you huge returns on your investment but in long term strong financials, low D/E ratio, variety in product portfolio and increasing foreign clients should result in better returns.
Please consider following points befor making your investment decision:
Laxmi organics product portfolio :
Lakshmi Organics is a well-known chemical manufacturing company with a wide product portfolio. They work in sectors like agrochemicals, pharmaceuticals and specialty intermediates.
These include acetaldehyde, ethyl alcohol, ethyl acetate and other compounds. Lakshmi Organics meets global standards of reliability, safety and sustainability.
They maintain strong customer relationships with high quality products and specific solutions. Lakshmi Organics is the trusted choice for chemical needs around the world because of its commitment to sustainable and corrective practices.
Branding :
Laxmi organics has both local and foreign clients. Its branding is improving day by day and company is getting new clients and contracts.
Research and development :
Laxmi organics invests heavily on research and development and that results in high quality products at reasonable cost. That should benifit them in future.
Is laxmi organic debt free ?
Recently, I wondered if Lakshmi Organic is debt-free? This is an exciting topic worth considering, especially if you’re like me, who keeps a keen eye on the financial health of many companies. The debt-free status of an institution says a lot about its ability to manage its resources and its financial health.
For newcomers, Lakshmi Organic is a leading company in speciality chemicals and intermediate products. Looking carefully at their financial situation, they are doing well in managing their debts.
This situation recommends careful planning, effective management decisions, and sustainable growth plans—all of which bode well for those considering investment and those curious about the status of successful businesses.
Being debt-free may be a good sign overall, but a more in-depth assessment will still be required to ascertain future prospects, as corporate finance is much more than just being debt-free.
Analysing the financials of Laxmi Organics, we can safely call it a debt-free company because its equity ratio is meager at .26 as of March 2023.
Conclusion
Lakshmi Organic Share is running at the price level of 275; even today, a decline has been seen there. You can see that in the last five years, this stock has been falling from a high level, and now it is stuck at the level of 275.
This is important because the results of the company had just come, and we saw that the net sales were fine. There was an improvement in EBITDA, which was 38 compared to 28 in the last year. The company had done a lot worse in recent quarters.
Other income was seen at Rs 8 crores, and if we see the total profit after tax, this time the profit was only Rs 10–11 crores, which is better than a year ago.
What is important about the stock is that the promoter’s stake is still 72%, and the DII’s stake remains the same as it was earlier.
We would suggest you to consider all financials of Laxmi Organics and make an informed decision.