Laxmi Organic Industries Upgraded to 'Hold' Status

Laxmi Organic Industries, a midcap company in the pesticides and agrochemicals industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on various factors, including the company's low Debt to Equity ratio, which stands at 0.06 times on average. Additionally, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on 27th December 2023.
The majority shareholders of Laxmi Organic Industries are the promoters, which can be seen as a positive sign for the company. However, the company has shown poor long-term growth with an annual operating profit growth rate of -26.46% over the last 5 years. Furthermore, the company has declared negative results for the last 5 consecutive quarters, with a significant decrease in PBT and PAT.

With a ROCE of 9.88% and ROE of 6.9%, the company's valuation is considered to be very expensive with a price to book value of 5.6. The stock is currently trading at a premium compared to its historical valuations. In the past year, while the stock has generated a negative return of -0.61%, its profits have also fallen by -55.3%.

In comparison to the market (BSE 500), Laxmi Organic Industries has underperformed in the last 1 year, with a negative return of -0.61% while the market has generated a return of 24.26%. Overall, while the company has some positive aspects, it is important to consider the negative factors before making any investment decisions.