Check Before You Invest : Laxmi Organic Industries Ltd

Q: Which industry/sub-sector does Laxmi Organic Industries Ltd belong to?

Laxmi Organic Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q: Is Laxmi Organic Industries Ltd a good quality company?

Laxmi Organic Industries Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Laxmi Organic Industries Ltd undervalued or overvalued?

Laxmi Organic Industries Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 53.64, Historic Median: 47.77. Price to Book, Current: 2.33, Historic Median: 4.62. Price to Sales, Current: 1.63, Historic Median: 2.57. EV to EBITDA, Current: 24.51, Historic Median: 25.27

Q: Is Laxmi Organic Industries Ltd a good buy now?

Laxmi Organic Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd revenue growth is 4.3% for FY-2025, which is below its 5-year CAGR of 16.73%, indicating slower growth.

Q: Gross Profit margin of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025, which is in line with its 5-year median of 9.9%, indicating stable margins.

Q: Operating Profit Margin of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.2% for FY-2025, which is in line with its 5-year median of 10.2% indicating stable margins.

Q: Net Profit Margin of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Net Profit Margin is 4.01% for FY-2025, is below its 5-year median of 5.01%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.8, Historic Median: 9.9. Operating Profit Margin (%), Current: 10.2, Historic Median: 10.2. Net Profit Margin (%), Current: 4.01, Historic Median: 5.01

Q: Return on Asset of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Return on Asset is 3.75%, which is below its 5-year historical median of 5.99%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Return on capital employed is 9.03% for FY-2025, which is below its 5-year historical median of 12.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Laxmi Organic Industries Ltd

Snapshot

Q.1 Which industry/sub-sector does Laxmi Organic Industries Ltd belong to?

Laxmi Organic Industries Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Laxmi Organic Industries Ltd a good quality company?

Laxmi Organic Industries Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Laxmi Organic Industries Ltd undervalued or overvalued?

Laxmi Organic Industries Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	53.64	47.77
Price to Book	2.33	4.62
Price to Sales	1.63	2.57
EV to EBITDA	24.51	25.27

Q.4 Is Laxmi Organic Industries Ltd a good buy now?

Laxmi Organic Industries Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd revenue growth is 4.3% for FY-2025, which is below its 5-year CAGR of 16.73%, indicating slower growth.

Q.2 Gross Profit margin of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.8% for FY-2025, which is in line with its 5-year median of 9.9%, indicating stable margins.

Q.3 Operating Profit Margin of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.2% for FY-2025, which is in line with its 5-year median of 10.2% indicating stable margins.

Q.4 Net Profit Margin of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Net Profit Margin is 4.01% for FY-2025, is below its 5-year median of 5.01%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.8	9.9
Operating Profit Margin (%)	10.2	10.2
Net Profit Margin (%)	4.01	5.01

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Return on Asset is 3.75%, which is below its 5-year historical median of 5.99%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Return on capital employed is 9.03% for FY-2025, which is below its 5-year historical median of 12.95%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Return on equity is 6.44% for FY-2025, which is below its 5-year historical median of 10.17%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Cash conversion cycle is 11 days, below its 5-year historical median of 16 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.94	1.16
ROE (%)	6.44	10.17
ROCE (%)	9.03	12.95
Cash Conversion Cycle	11 days	16 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Debt-to-Equity ratio is 0.13, which is lower the industry average of 0.13, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Laxmi Organic Industries Ltd?

Laxmi Organic Industries Ltd Debt to cash flow from operations is 2.21, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Laxmi Organic Industries Ltd?

Q.1 Promoter shareholding and pledge status of Laxmi Organic Industries Ltd?

Promoters hold 69.35% of the Laxmi Organic Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Laxmi Organic Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Laxmi Organic Industries Ltd vs industry peers?

Laxmi Organic Industries Ltd revenue CAGR is 16.73%, compared to the industry median CAGR of 7.53%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	4.3	7.5
Gross Profit Growth (%)	2.5	12.1
Operating Profit Growth (%)	9.3	11.7
Net Profit Growth (%)	-7.1	9.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.94	0.93
ROE (%)	6.44	10.17
ROCE (%)	9.03	12.96
Cash Conversion Cycle (days)	10.76	62

Valuation & price assessment

Q.1 Stock return of Laxmi Organic Industries Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -5.57% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-5.6%	-16.4%	-3.9%

Q.2 Valuation ratios of Laxmi Organic Industries Ltd vs historical?

The current P/E ratio of 53.64 is higher than its historical median of 47.77, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	53.64	47.77	28.17
Price to Book	2.33	4.62	2.22
Price to Sales	1.63	2.57	1.93
EV to EBITDA	24.51	25.27	14.20

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Check Before You Invest : Laxmi Organic Industries Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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