Laxmi Cotspin Ltd. (LAXMICOT) AI Stock Analysis

• Market Cap: ₹231.49M
• Dividend Yield: N/A
• Average Volume (3M): 31.79K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.58
• Revenue Growth: 12.55%
• EPS Growth: N/A
• Country: IN
• Employees: 450
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.24
• 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: 47 Neutral
• Price Target: ₹14.00 ▼(-24.61% Downside)

The score is held back primarily by weak financial performance (ongoing losses, margin pressure, high leverage, and negative free cash flow) and a clearly bearish technical trend (price well below key moving averages with negative MACD). A low P/E provides some valuation support but is not enough to offset the profitability and trend risks.

Positive Factors

Equity financing proportion

A meaningful equity proportion in the capital structure reduces reliance on debt and refinancing risk over the medium term. This provides the company flexibility to absorb cyclical textile demand swings, supports incremental capex funding, and preserves borrowing capacity for strategic investments.

Revenue growth trend

Reported revenue growth of ~12.5% indicates ongoing demand for the company's cotton products and potential market share gains. Sustained top-line growth, if maintained, improves prospects for scale benefits, better capacity utilization and eventual margin recovery if cost trends are managed.

Integrated textile business model

Operating across cotton manufacturing and value-added processing anchors recurring revenue streams to downstream textile customers. This vertical exposure enhances customer stickiness, supports cross-selling of processing services, and aligns with stable industrial demand in the textile supply chain.

Negative Factors

Persistent losses and negative margins

Ongoing negative operating and net margins indicate structural profitability issues that can erode equity and limit reinvestment. Without sustainable margin improvement, the company will struggle to fund operations internally, attract financing on favorable terms, or generate shareholder returns.

Negative free cash flow

Persistent negative free cash flow forces dependency on external financing to fund capital expenditure and working capital. This weak cash generation constrains the firm's ability to upgrade efficiency, respond to competitive pressures, and increases vulnerability during revenue downturns.

Relatively high leverage

High leverage magnifies financial strain given the firm's losses and negative cash flow, increasing interest burdens and refinancing risk. Over the medium term, elevated debt limits strategic flexibility, raises default risk in stress scenarios, and can force asset sales or dilutive capital raises.

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. generates revenue primarily through the sale of cotton yarn, which is one of its core products. The company operates a vertically integrated business model, allowing it to control various stages of production from cotton procurement to spinning and processing. Key revenue streams include the direct sale of cotton yarn to textile manufacturers, which constitutes a significant portion of its income. Additionally, LAXMICOT may engage in exporting its products to global markets, further enhancing its revenue potential. Strategic partnerships with raw cotton suppliers and textile manufacturers also play a crucial role in maintaining a steady supply chain and improving profit margins. The company's focus on quality and innovation allows it to command competitive prices in the market, contributing to its overall earnings.

Laxmi Cotspin Ltd. Financial Statement Overview

Summary

Financial performance is weak: the company has sustained negative EBIT and net income with declining gross margin and erratic revenue. Leverage is relatively high (raising risk) and recent negative free cash flow points to insufficient cash generation and operational inefficiency.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.74B	1.54B	1.44B	1.43B	2.16B	1.16B
Gross Profit	254.37M	163.84M	255.45M	108.47M	352.55M	248.70M
EBITDA	71.53M	28.61M	59.09M	-15.53M	138.95M	72.09M
Net Income	-126.00K	-48.05M	-2.69M	-58.59M	54.49M	10.86M
Balance Sheet
Total Assets	0.00	1.19B	1.20B	983.46M	1.08B	912.31M
Cash, Cash Equivalents and Short-Term Investments	7.01M	7.01M	10.02M	3.52M	1.52M	15.19M
Total Debt	0.00	467.58M	501.85M	422.75M	446.38M	316.58M
Total Liabilities	-627.91M	565.61M	570.82M	867.51M	539.51M	431.18M
Stockholders Equity	627.91M	627.91M	629.09M	477.49M	535.77M	481.12M
Cash Flow
Free Cash Flow	0.00	-75.16M	-91.76M	33.34M	-89.16M	165.74M
Operating Cash Flow	0.00	48.84M	-84.04M	47.54M	-57.11M	168.40M
Investing Cash Flow	0.00	-50.51M	-10.56M	-15.96M	-36.08M	14.39M
Financing Cash Flow	0.00	-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: Negative
• RSI: Neutral
• STOCH: Neutral

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 14.46, above the 50-day MA of 17.38, and below the 200-day MA of 23.22, indicating a bearish trend. The MACD of -1.20 indicates Negative momentum. The RSI at 40.25 is Neutral, neither overbought nor oversold. The STOCH value of 56.09 is Neutral, 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%
LAXMICOT	47 Neutral	₹231.49M	5.84	―	―	12.55%	―
NORBTEAEXP	47 Neutral	₹1.28B	-131.11	―	―	-5.84%	50.29%
SUPERSPIN	46 Neutral	₹430.10M	-2.71	―	―	-9.14%	-16.81%
SVPGLOB	46 Neutral	₹455.40M	-0.05	―	―	-85.84%	-93.11%
MOHITIND	41 Neutral	₹377.58M	-24.29	―	―	28.50%	9.14%

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.