Laxmi Organic Industries Ltd Stock Falls to 52-Week Low of Rs.136.45

Stock Price Movement and Market Context

On 27 Jan 2026, Laxmi Organic Industries Ltd’s share price fell to Rs.136.45, establishing both a new 52-week and all-time low. This decline comes after two consecutive days of losses, during which the stock has delivered a cumulative return of -3.27%. The day’s performance saw the stock underperform its Specialty Chemicals sector by 0.7%, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained downward momentum.

The broader market environment has also been subdued. The Sensex opened 100.91 points lower and was trading at 81,409.61, down 0.16% on the day. Notably, the Sensex has experienced a three-week consecutive decline, losing 2.59% over this period. Several indices, including NIFTY MEDIA and NIFTY REALTY, also hit new 52-week lows today, signalling a cautious market sentiment.

Comparative Performance Over One Year

Over the past year, Laxmi Organic Industries Ltd’s stock has depreciated by 35.00%, a stark contrast to the Sensex’s positive return of 8.02% during the same period. The stock’s 52-week high was Rs.240.60, highlighting the extent of the recent decline. This underperformance is consistent with the company’s financial results and operational metrics, which have shown deterioration over recent quarters.

Financial Performance and Profitability Metrics

Laxmi Organic Industries Ltd’s financial indicators reveal several areas of concern. The company’s average Return on Equity (ROE) stands at 8.76%, which is considered low and indicative of limited profitability generated from shareholders’ funds. This figure has contributed to the stock’s Strong Sell Mojo Grade of 23.0, which was downgraded from Sell on 3 Nov 2025.

Operating profit has declined at an annualised rate of -22.58% over the last five years, reflecting challenges in sustaining growth. The company has reported negative results for three consecutive quarters, with Profit Before Tax (PBT) excluding other income falling by 54.6% to Rs.11.57 crores compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) declined by 56.2% to Rs.11.02 crores in the same comparison.

Return on Capital Employed (ROCE) for the half-year period is notably low at 4.87%, further underscoring the subdued efficiency in capital utilisation. The company’s ROE for the latest period is 4.3%, which, combined with a Price to Book Value ratio of 2, suggests an expensive valuation relative to its profitability. Despite this, the stock is trading at a discount compared to its peers’ historical valuations.

Long-Term Underperformance and Valuation

Over the last three years, Laxmi Organic Industries Ltd has consistently underperformed the BSE500 index. The stock’s returns have been negative in each of the past three annual periods, with a one-year return of -35.00% accompanied by a 37.7% decline in profits. This persistent underperformance has contributed to the current market sentiment and the stock’s recent price lows.

Despite the challenges, the company maintains a low average Debt to Equity ratio of 0.06 times, indicating limited leverage and a conservative capital structure. The majority shareholding remains with promoters, which may influence strategic decisions and governance.

Summary of Key Metrics

The stock’s current Mojo Grade of Strong Sell reflects the combination of low profitability, declining operating profit, and negative quarterly results. The downgrade from Sell to Strong Sell on 3 Nov 2025 highlights the deteriorating financial health. The market capitalisation grade is 3, indicating a mid-tier valuation relative to market peers.

Trading below all major moving averages and at a 52-week low, Laxmi Organic Industries Ltd’s stock price reflects the cumulative impact of these factors. The broader market’s cautious tone, with the Sensex also below its 50-day moving average, adds to the subdued environment for the stock.

Conclusion

Laxmi Organic Industries Ltd’s fall to Rs.136.45 marks a significant milestone in its recent price trajectory, underscored by weak financial performance and sustained underperformance relative to benchmarks. The company’s low ROE, shrinking profits, and negative quarterly results have contributed to the current valuation and market sentiment. While the stock trades at a discount to peers historically, its valuation remains expensive relative to current profitability metrics. The low leverage and promoter majority shareholding remain notable features amid the challenging backdrop.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →