Recent Price Movement and Market Context
On 24 Feb 2026, Laxmi Organic Industries Ltd’s share price touched an intraday low of Rs.132.55, representing a fall of 2.39% on the day and a 1.99% decline compared to the previous close. This new low also marks the stock’s all-time lowest price level. Over the past three trading sessions, the stock has consecutively declined, resulting in a cumulative loss of 6.04%. The stock underperformed its sector by 1.22% on the same day, indicating relative weakness within the specialty chemicals segment.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning suggests that short-term and long-term investor confidence remains subdued.
Broader Market Environment
The broader market context also reflects some volatility. The Sensex opened 242.12 points lower and closed down by 467.67 points at 82,584.87, a decline of 0.85%. Despite this, the Sensex remains within 4.33% of its 52-week high of 86,159.02, indicating that the broader market has not experienced a similar degree of weakness as Laxmi Organic. The Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, suggesting mixed signals for the overall market trend.
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Long-Term Performance and Valuation Metrics
Over the last year, Laxmi Organic Industries Ltd has delivered a total return of -29.18%, significantly underperforming the Sensex, which posted a positive return of 10.92% over the same period. The stock’s 52-week high was Rs.240.60, highlighting the extent of the decline from its peak.
The company’s fundamentals have shown signs of strain. Operating profits have contracted at a compound annual growth rate (CAGR) of -8.49% over the past five years, reflecting challenges in sustaining growth. Return on Equity (ROE) averaged 8.76%, indicating modest profitability relative to shareholders’ funds. More recently, the company reported a ROE of 4.3% and a Return on Capital Employed (ROCE) of 4.87% for the half-year period, both figures pointing to subdued efficiency in capital utilisation.
Profit after tax (PAT) for the latest six months stood at Rs.36.43 crores, declining by 36.53% compared to prior periods. Cash and cash equivalents were reported at Rs.82.44 crores, the lowest level recorded in recent half-yearly disclosures. The company’s price-to-book value ratio is approximately 2, which, combined with the low ROE, suggests an expensive valuation relative to its current profitability.
Consistent Underperformance and Market Sentiment
Laxmi Organic has consistently underperformed its benchmark indices over the last three years. Alongside the negative returns of -29.18% in the past year, the stock has lagged behind the BSE500 index in each of the last three annual periods. Profitability has also deteriorated, with a 41.5% decline in profits over the past year, underscoring the challenges faced by the company in maintaining earnings growth.
The company’s majority shareholding remains with promoters, who continue to hold a controlling stake. Despite this, the market has reacted cautiously to the company’s recent financial disclosures and price performance.
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Mojo Score and Analyst Ratings
The company’s Mojo Score currently stands at 9.0, with a Mojo Grade of Strong Sell as of 3 Nov 2025, upgraded from a previous Sell rating. This grading reflects the assessment of the company’s financial health, valuation, and performance trends. The Market Capitalisation Grade is 3, indicating a relatively modest market cap within its sector.
These ratings incorporate the company’s recent financial results, valuation metrics, and comparative performance within the specialty chemicals industry.
Summary of Key Financial Indicators
To summarise, Laxmi Organic Industries Ltd’s key financial indicators as of the latest reporting period include:
- Operating Profit CAGR (5 years): -8.49%
- Average Return on Equity: 8.76%
- Latest Half-Year PAT: Rs.36.43 crores (down 36.53%)
- ROCE (Half-Year): 4.87%
- Cash and Cash Equivalents: Rs.82.44 crores
- Price to Book Value: 2.0
- 1-Year Stock Return: -29.18%
- Profit Decline Over Past Year: -41.5%
These figures highlight the pressures on profitability and valuation that have contributed to the stock’s recent decline to its 52-week low.
Technical and Market Positioning
From a technical perspective, the stock’s position below all major moving averages signals a bearish trend. The consecutive three-day decline and underperformance relative to the sector further reinforce the current negative momentum. The broader market’s relative resilience contrasts with the stock’s weakness, emphasising company-specific factors as primary drivers of the price movement.
Conclusion
Laxmi Organic Industries Ltd’s fall to Rs.132.55 marks a significant milestone in its recent price trajectory, reflecting a combination of subdued financial performance, valuation concerns, and market dynamics. The company’s declining profitability, low returns on equity and capital employed, and consistent underperformance against benchmarks have all contributed to the current valuation levels. While the broader market remains relatively stable, Laxmi Organic’s stock continues to face headwinds as reflected in its strong sell rating and technical indicators.
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