Laxmi Organic Industries Ltd. (LXCHEM) AI Stock Analysis

• Market Cap: ₹54.15B
• Dividend Yield: 0.26%
• Average Volume (3M): 110.76K
• Price to Earnings (P/E): 64.9
• Beta (1Y): 1.41
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹208.00 ▲(6.72% Upside)

The overall stock score is primarily influenced by mixed financial performance, with strong revenue growth offset by declining profitability and cash flow challenges. Technical indicators suggest weak momentum, and the high P/E ratio indicates overvaluation, further impacting the score.

Laxmi Organic Industries Ltd. Business Overview & Revenue Model

Company Description

Laxmi Organic Industries Ltd. (LXCHEM) is a leading manufacturer in the chemical sector, specializing in the production of specialty chemicals and intermediates. The company primarily operates in the fine chemicals and pharmaceuticals sectors, offering a diverse range of products including acetyl derivatives, alcohols, and agrochemicals. With a strong emphasis on sustainability and innovation, LXCHEM aims to cater to various industries, including pharmaceuticals, agrochemicals, and food additives, establishing itself as a key player in the chemical manufacturing landscape.

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	3.77B	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: 194.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 194.9 is below the 20-day moving average (MA) of 200.97, below the 50-day MA of 209.11, and below the 200-day MA of 197.60, indicating a bearish trend. The MACD of -3.69 indicates Positive momentum. The RSI at 39.00 is Neutral, neither overbought nor oversold. The STOCH value of 20.33 is Neutral, 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	64 Neutral	₹62.85B	25.78	―	0.50%	7.46%	33.78%
GMMPFAUDLR	63 Neutral	₹57.70B	134.38	―	0.23%	3.69%	-36.27%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
LXCHEM	54 Neutral	₹54.15B	64.85	―	0.26%	-2.93%	-37.94%
NFL	49 Neutral	₹45.48B	29.68	―	1.68%	-22.78%	-41.69%
CAMLINFINE	46 Neutral	₹36.92B	-29.50	―	―	8.06%	19.90%

Laxmi Organic Industries Ltd. Corporate Events

Laxmi Organic Industries Ltd. Conducts 36th AGM with E-Voting

Laxmi Organic Industries Ltd. recently held its 36th Annual General Meeting (AGM) on July 31, 2025, conducted through video conferencing. The meeting involved remote e-voting and e-voting during the AGM, with M/s GMJ & Associates serving as the scrutinizer to ensure a fair and transparent voting process. The resolutions were successfully transacted with the assistance of MUFG Intime India Private Limited, highlighting the company’s commitment to maintaining robust governance practices.

Laxmi Organic Confirms Adherence to IPO Fund Utilization Plans

Laxmi Organic Industries Ltd. announced that there has been no deviation in the utilization of IPO proceeds from the objectives stated in their March 2021 prospectus. The funds raised have been used as planned for investments in subsidiaries, capital expenditures, and other corporate purposes, maintaining transparency and adherence to their financial commitments. This announcement reinforces the company’s commitment to its strategic financial planning and could strengthen stakeholder confidence.

Laxmi Organic Confirms Proper Utilization of QIP Funds

Laxmi Organic Industries Ltd. announced that there has been no deviation in the utilization of funds raised through a Qualified Institutional Placement (QIP) as of June 30, 2025. The funds, amounting to Rs. 2,591.21 million, were allocated for capital expenditure on new facilities and general corporate purposes. The confirmation of proper fund utilization underscores the company’s commitment to transparency and strategic growth, potentially strengthening its position in the specialty chemicals market.

Laxmi Organic Confirms Proper Utilization of IPO Proceeds

Laxmi Organic Industries Ltd. has announced that there has been no deviation in the utilization of IPO proceeds from the objectives stated in their March 2021 prospectus. This confirmation, detailed in a report by Axis Bank Limited, underscores the company’s commitment to transparency and proper fund allocation, potentially strengthening stakeholder confidence and reinforcing its market position.

Laxmi Organic Announces Q1 FY26 Investor Meet

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