Laxmi Organic Industries Faces Valuation Adjustment Amid Declining Profit Growth and Market Underperformance

Laxmi Organic Industries, a midcap player in the specialty chemicals sector, has recently undergone an adjustment in its evaluation. The revision in its score reflects a shift in valuation grade, moving from a previously assessed level to a fair valuation.
Key financial metrics indicate a PE ratio of 48.13 and a price-to-book value of 2.87, suggesting a relative positioning within the market. The company’s EV to EBITDA stands at 19.52, while the EV to EBIT is noted at 35.07. Additionally, the EV to sales ratio is recorded at 1.83, which provides insight into its operational efficiency.

Despite these metrics, Laxmi Organic has faced challenges, including a decline in operating profit growth over the past five years, which has averaged -2.21%. The latest quarter reported a PAT of Rs 21.76 crore, reflecting a significant drop compared to previous averages. Furthermore, the company has consistently underperformed against benchmark indices over the last three years, with a return of -21.36% in the past year.

Overall, the adjustment in evaluation for Laxmi Organic Industries highlights the complexities of its financial landscape and market position.

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