Laxmi Organic Industries Ltd. (LXCHEM) AI Stock Analysis

• Market Cap: ₹42.07B
• Dividend Yield: 0.29%
• Average Volume (3M): 110.76K
• Price to Earnings (P/E): 50.4
• Beta (1Y): 1.45
• Revenue Growth: -2.93%
• EPS Growth: -37.94%
• Country: IN
• Employees: 954
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.40
• Shares Outstanding: 277,147,900
• 10 Day Avg. Volume: 28,143
• 30 Day Avg. Volume: 110,760
• PEG Ratio: -5.49
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 1.68
• P/FCF Ratio: -17.56
• 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: 51 Neutral
• Price Target: ₹184.00 ▲(9.43% Upside)

Laxmi Organic Industries Ltd. has a low overall stock score primarily due to weak technical indicators and high valuation concerns. While the company shows strong revenue growth and low leverage, the negative cash flow and declining profit margins are significant risks. The stock's bearish momentum and overvaluation further weigh down the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, bolstering long-term business sustainability.

Low Leverage

Low leverage enhances financial stability and reduces risk, providing more flexibility for future investments and growth.

Efficient Production Processes

High gross profit margin reflects efficient production, allowing the company to maintain competitiveness and profitability.

Negative Factors

Declining Net Profit Margins

Decreasing net profit margins can strain profitability, indicating challenges in cost management and pricing power.

Negative Free Cash Flow

Inability to convert earnings into free cash flow can hinder investment capacity and operational flexibility, affecting long-term growth.

Declining Return on Equity

Lower return on equity suggests inefficiencies in generating profits from shareholders' equity, potentially impacting investor confidence.

Laxmi Organic Industries Ltd. Business Overview & Revenue Model

Company Description

Laxmi Organic Industries Limited, a specialty chemical manufacturer, provides acetyl and specialty intermediates in India. The company's acetyl intermediates include ethyl acetate, acetaldehyde, fuel-grade ethanol, and other proprietary solvents; and specialty intermediates comprise ketene and diketene derivatives, such as esters, acetic anhydride, amides, arylides, and other chemicals. Its products are used in pharmaceuticals, agrochemicals, dyes and pigments, inks and paints, coatings, printing, packaging, flavour and fragrance, adhesives, electronics, automotive, and other industrial applications. The company exports its products to approximately 43 countries. Laxmi Organic Industries Limited was incorporated in 1989 and is based in Mumbai, India.

How the Company Makes Money

Laxmi Organic Industries Ltd. generates revenue through the sale of its specialty chemicals and intermediates to various industries, including pharmaceuticals, agrochemicals, and food. The company's revenue model is primarily driven by the production and supply of high-quality chemical products, which are sold to both domestic and international markets. Key revenue streams include direct sales to manufacturers in need of chemical inputs, as well as long-term contracts with major clients in the pharmaceutical and agrochemical sectors. Significant partnerships with other companies in the chemical and pharmaceutical industries further bolster LXCHEM's revenue potential, allowing it to expand its market reach and enhance its product offerings.

Laxmi Organic Industries Ltd. Financial Statement Overview

Summary

Laxmi Organic Industries Ltd. shows strong revenue growth and low leverage, indicating a robust operational model. However, declining net profit margins and negative free cash flow highlight areas for improvement in profitability and cash conversion.

Income Statement

Laxmi Organic Industries Ltd. has demonstrated a steady increase in total revenue over recent years, with a notable revenue growth rate of 5.34% from 2024 to 2025. The gross profit margin for 2025 is 26.98%, indicating efficient production processes, although net profit margin declined to 3.80% due to rising costs. Despite this, EBIT and EBITDA margins show some resilience at 22.07% and 9.36% respectively for 2025.

Balance Sheet

The company maintains a strong equity base with an equity ratio of 62.63% in 2025, reflecting financial stability and low leverage. The debt-to-equity ratio stands at 0.14, suggesting low reliance on debt financing which is a positive indicator for risk management. Return on equity slightly declined to 5.95% in 2025, indicating potential inefficiencies in profit generation from equity.

Cash Flow

Laxmi Organic Industries Ltd. faced challenges in its cash flow management, as indicated by a negative free cash flow in 2025. The free cash flow to net income ratio is negative, suggesting that the company is not converting its earnings into free cash effectively. Operating cash flow also decreased significantly, impacting liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.60B	29.85B	28.34B	27.97B	30.80B	17.60B
Gross Profit	8.12B	8.05B	6.61B	9.41B	9.26B	5.44B
EBITDA	2.48B	2.80B	2.86B	2.59B	3.80B	2.20B
Net Income	1.01B	1.14B	1.21B	1.25B	2.57B	1.27B
Balance Sheet
Total Assets	0.00	30.45B	28.27B	24.12B	22.68B	18.37B
Cash, Cash Equivalents and Short-Term Investments	1.87B	2.64B	2.34B	2.22B	1.57B	5.08B
Total Debt	0.00	2.58B	1.43B	4.06B	1.39B	2.35B
Total Liabilities	-19.07B	11.38B	10.29B	10.00B	9.59B	8.02B
Stockholders Equity	19.07B	19.07B	17.98B	14.12B	13.01B	10.35B
Cash Flow
Free Cash Flow	0.00	-2.86B	3.14B	-2.77B	-2.43B	-89.14M
Operating Cash Flow	0.00	1.08B	5.62B	1.99B	649.90M	1.06B
Investing Cash Flow	0.00	-2.68B	-4.90B	-3.84B	546.06M	-6.43B
Financing Cash Flow	0.00	901.22M	-419.03M	2.32B	-1.24B	5.27B

Laxmi Organic Industries Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 168.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:LXCHEM, the sentiment is Negative. The current price of 168.15 is above the 20-day moving average (MA) of 167.54, below the 50-day MA of 177.53, and below the 200-day MA of 192.28, indicating a bearish trend. The MACD of -5.60 indicates Positive momentum. The RSI at 20.17 is Positive, neither overbought nor oversold. The STOCH value of 7.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:LXCHEM.

Laxmi Organic Industries Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDIAGLYCO	65 Neutral	₹63.88B	22.77	―	0.47%	5.61%	33.63%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
GMMPFAUDLR	61 Neutral	₹46.29B	68.98	―	0.19%	3.69%	-36.27%
LXCHEM	51 Neutral	₹42.07B	50.38	―	0.29%	-2.93%	-37.94%
CAMLINFINE	46 Neutral	₹29.41B	-97.11	―	―	9.21%	87.89%
NFL	45 Neutral	₹41.16B	39.07	―	1.77%	-7.78%	-70.89%

Laxmi Organic Industries Ltd. Corporate Events

India Ratings Revises Outlook on Laxmi Organic’s Bank Loans to Negative, Reaffirms Ratings

Laxmi Organic Industries Ltd. announced that India Ratings and Research has revised the outlook on its bank loan facilities to ‘Negative’ from ‘Stable’, while reaffirming the ratings at ‘IND AA/Negative/IND A1+’. The agency also reaffirmed the company’s ‘IND A1+’ rating on its commercial paper, signaling continued confidence in its short-term creditworthiness despite increased caution over its longer-term credit profile, which may influence borrowing costs and investor perception of the company’s financial risk.

Laxmi Organic Confirms Dispatch of Postal Ballot Notice

Laxmi Organic Industries Limited has announced the publication of newspaper advertisements in Business Standard and Sakal, confirming the dispatch of a postal ballot notice through electronic means. This announcement is in compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The move underscores the company’s commitment to adhering to regulatory requirements and ensuring transparent communication with its stakeholders.

Laxmi Organic Confirms Proper Utilization of IPO Proceeds

Laxmi Organic Industries Ltd. has announced that there has been no deviation in the use of funds raised from its IPO, as confirmed in the latest Monitoring Agency Report by Axis Bank for the quarter ended September 30, 2025. This transparency in fund utilization underscores the company’s commitment to its stated objectives and may reinforce investor confidence, maintaining its strong position in the specialty chemicals market.

Laxmi Organic Industries Schedules Investor Meet to Discuss Financial Performance

Laxmi Organic Industries Ltd. announced an upcoming Investor & Analyst Meet to discuss its financial performance for the quarter and half-year ended September 30, 2025. This meeting aims to provide insights into the company’s operational results and strategic direction, potentially impacting its market positioning and stakeholder interests.