KR Choksey has given Buy recommendation for Laxmi Organics Industries with a target price of Rs. 620 in its research report issued on Feb 03, 2022
KR Choksey’s research report on Laxmi Organics Industries
Revenue reported at INR 8,599 Mn (+97.4% yoy / +41.4% qoq) which is well above our estimates of INR 7,622 Mn. The growth was backed by higher volumes and increased realizations of Acetyl Intermediates (AI) and improved product mix performance in Specialty Intermediates (SI). The gross profit reported at INR 3,081 Mn (+85.5% yoy / +122.3% qoq). The gross margins stood at 35.8% (-231bps yoy / +1304bps qoq) due to high cost of goods sold. Resumption in SI business operations post flood restoration and strong demand from international markets has boosted profitability for the quarter. EBITDA reported at INR 1,187 Mn (+75.4% yoy / +284.3% qoq) and EBITDA margin reported at 13.8% (-173bps yoy / +872bps qoq). PAT reported at INR 821 Mn (+67.3% yoy / +463.6% qoq) and PAT margin stood at 9.5% (-172bps yoy / +715bps qoq). Diluted EPS reported at INR 3.07.
We maintain our ‘BUY’ recommendation on the share of Laxmi Organics Industries Ltd with a target price of INR 620/share (upside 28.2%).
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At 17:30 Laxmi Organic Industries was quoting at Rs 477.05, down Rs 7.15, or 1.48 percent.
It has touched an intraday high of Rs 493.00 and an intraday low of Rs 470.00.
It was trading with volumes of 176,525 shares, compared to its thirty day average of 127,399 shares, an increase of 38.56 percent.
In the previous trading session, the share closed up 1.35 percent or Rs 6.45 at Rs 484.20.
The share touched its 52-week high Rs 628.05 and 52-week low Rs 143.00 on 16 September, 2021 and 25 March, 2021, respectively.
Currently, it is trading 24.04 percent below its 52-week high and 233.6 percent above its 52-week low.
Market capitalisation stands at Rs 12,578.03 crore.