Laxmi Cotspin Ltd. (LAXMICOT) AI Stock Analysis

• Market Cap: ₹212.46M
• Dividend Yield: N/A
• Average Volume (3M): 31.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: 12.55%
• EPS Growth: N/A
• Country: IN
• Employees: 450
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.86
• Shares Outstanding: 17,147,670
• 10 Day Avg. Volume: 10,561
• 30 Day Avg. Volume: 31,787
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -5.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹12.50 ▼(-32.69% Downside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weak financial performance (ongoing losses, declining margins, negative free cash flow, and relatively high leverage). Technicals also remain soft with the stock below longer-term moving averages and only neutral momentum signals. Valuation is a partial offset with a moderate P/E, but not enough to overcome the profitability and cash-flow concerns.

Positive Factors

Stable textile value-chain role

Operating as a supplier within the cotton textile value chain gives Laxmi Cotspin structurally recurring demand from mills, garment makers and traders. This customer-facing manufacturing role supports long-term revenue visibility and market relevance even amid cyclical swings.

Reasonable equity financing proportion

A meaningful equity base provides a capital cushion versus a pure debt-funded structure. Over months this equity proportion supports solvency, improves creditor confidence, and gives the company flexibility to pursue equity or hybrid financing rather than relying solely on costly debt.

Stable tangible asset base

Relatively stable total assets imply an existing productive manufacturing footprint and limited need for large, immediate capex. This supports operational continuity and the ability to scale production without heavy incremental investment, aiding medium-term recovery prospects.

Negative Factors

Persistent negative profitability

Ongoing negative EBIT and net income erode retained earnings and limit the firm's ability to self-fund operations or investments. Structural margin deterioration points to cost pressure or pricing weakness that, if not corrected, undermines long-term viability and the chance to sustainably restore profitability.

Negative free cash flow

Persistent negative free cash flow forces reliance on external funding for capex and working capital, raising refinancing and liquidity risk. Over a multi-month horizon this constrains operational flexibility, limits investment in efficiency improvements, and heightens vulnerability in tighter credit conditions.

Relatively high leverage

Elevated debt levels increase interest and covenant pressure, reducing financial flexibility. Combined with losses and negative cash flow, high leverage amplifies insolvency risk during downturns and constrains strategic options like capex, restructuring, or pursuing growth initiatives.

Laxmi Cotspin Ltd. Business Overview & Revenue Model

Company Description

Laxmi Cotspin Limited engages in processing and selling textiles in India. The company offers cotton yarns, bales, seeds, and oil; fabrics; and oil cakes. It exports its products to Asian and European countries. Laxmi Cotspin Limited was incorporated in 2005 and is based in Jalna, India.

How the Company Makes Money

Laxmi Cotspin Ltd. primarily makes money by selling its manufactured textile outputs (typically cotton yarn and/or other cotton-based textile products) to downstream customers such as textile mills, fabric/garment manufacturers, and traders; revenue is generally recognized from the sale of these goods. Additional earnings may come from value-added processing services (if provided) and by-products generated during cotton processing. Specific details on product mix, customer segments, contract structure, pricing mechanisms, export vs. domestic split, and named partnerships are not available: null.

Laxmi Cotspin Ltd. Financial Statement Overview

Summary

Weak profitability is the main drag: negative EBIT and net income with declining gross margin and negative net profit margin. Balance sheet is mixed with relatively high leverage (riskier in downturns) and negative ROE, while cash flow is pressured by negative free cash flow in recent years.

Income Statement

Laxmi Cotspin Ltd.'s income statement reflects declining performance. The gross profit margin has decreased over the years, indicating rising costs or pricing pressures. The company has consistently reported negative EBIT and net income, highlighting profitability challenges. Revenue growth has been erratic, and the net profit margin remains negative, which is concerning in terms of achieving profitability.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio is relatively high, indicating significant leverage which could pose risk in a volatile market. However, the equity ratio suggests a decent proportion of financing comes from equity. Return on equity is negative due to losses, but the company's total assets have remained relatively stable over the period.

Cash Flow

Cash flow analysis reveals challenges, with negative free cash flow in recent years indicating insufficient cash generation from operations to cover capital expenditures. The operating cash flow to net income ratio is difficult to analyze due to negative net income. The cash flow situation suggests a need for improved operational efficiency and better cash management.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.76B	1.54B	1.44B	1.43B	2.16B	1.16B
Gross Profit	252.99M	163.84M	255.45M	108.47M	352.55M	248.70M
EBITDA	114.95M	28.61M	59.09M	-15.53M	138.95M	72.09M
Net Income	41.66M	-48.05M	-2.69M	-58.59M	54.49M	10.86M
Balance Sheet
Total Assets	1.17B	1.19B	1.20B	983.46M	1.08B	912.31M
Cash, Cash Equivalents and Short-Term Investments	4.80M	7.01M	10.02M	3.52M	1.52M	15.19M
Total Debt	422.93M	467.58M	501.85M	422.75M	446.38M	316.58M
Total Liabilities	531.88M	565.61M	570.82M	867.51M	539.51M	431.18M
Stockholders Equity	642.09M	627.91M	629.09M	477.49M	535.77M	481.12M
Cash Flow
Free Cash Flow	23.68M	-75.16M	-91.76M	33.34M	-89.16M	165.74M
Operating Cash Flow	41.15M	48.84M	-84.04M	47.54M	-57.11M	168.40M
Investing Cash Flow	10.45M	-50.51M	-10.56M	-15.96M	-36.08M	14.39M
Financing Cash Flow	-53.81M	-47.12M	101.11M	-29.59M	92.55M	-183.42M

Laxmi Cotspin Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LAXMICOT, the sentiment is Negative. The current price of 18.57 is above the 20-day moving average (MA) of 16.05, above the 50-day MA of 16.04, and below the 200-day MA of 22.13, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 33.67 is Neutral, neither overbought nor oversold. The STOCH value of 8.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LAXMICOT.

Laxmi Cotspin Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NORBTEAEXP	47 Neutral	₹1.40B	391.89	―	―	-5.84%	50.29%
LAXMICOT	46 Neutral	₹212.46M	-5.49	―	―	12.55%	―
SUPERSPIN	45 Neutral	₹234.30M	9.82	―	―	-9.14%	-16.81%
MOHITIND	41 Neutral	₹324.21M	-35.11	―	―	28.50%	9.14%
SVPGLOB	39 Underperform	₹335.23M	-0.22	―	―	-85.84%	-93.11%

Laxmi Cotspin Ltd. Corporate Events

Laxmi Cotspin Files SEBI Demat Compliance Certificate for December Quarter

Laxmi Cotspin Ltd. has submitted to the National Stock Exchange of India a compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended 31 December 2025. The company’s registrar and share transfer agent, MUFG Intime India Pvt. Ltd., confirmed that all securities received for dematerialisation during the quarter were duly processed, listed on the appropriate stock exchanges, and that the corresponding physical certificates were verified, mutilated, cancelled, and substituted in the register of members within prescribed timelines, underscoring the company’s adherence to regulatory norms in handling its share capital.