Recent Price Movement and Market Context
On 12 Jan 2026, Laxmi Organic Industries Ltd’s stock touched an intraday low of Rs.147.3, representing a 2.96% drop from the previous close. The day’s decline of 2.11% notably underperformed the Specialty Chemicals sector by 1.96%. 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 persistent downward momentum.
In contrast, the broader market showed resilience with the Sensex recovering from an early loss of 140.93 points to close marginally higher by 0.06% at 83,628.70. The Sensex remains within 3.03% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence highlights the relative weakness of Laxmi Organic’s shares amid a generally stable market environment.
Long-Term Performance and Valuation Metrics
Over the past year, Laxmi Organic Industries Ltd has delivered a negative return of 34.09%, significantly lagging the Sensex’s positive 8.08% gain. The stock’s 52-week high was Rs.240.95, underscoring the extent of the recent decline. Despite this, the company’s valuation remains relatively expensive with a price-to-book value of 2.2, even as it trades at a discount compared to peer averages.
Financially, the company’s return on equity (ROE) stands at a modest 8.76%, reflecting limited profitability relative to shareholders’ funds. The return on capital employed (ROCE) for the half-year period is even lower at 4.87%, indicating subdued efficiency in generating returns from capital investments.
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Profitability and Earnings Trends
The company has reported negative results for three consecutive quarters, with profitability metrics showing marked deterioration. The quarterly profit before tax (PBT) excluding other income stood at Rs.11.57 crore, down 54.6% compared to the average of the previous four quarters. Similarly, the quarterly profit after tax (PAT) declined by 56.2% to Rs.11.02 crore over the same period.
Operating profit has contracted at an annualised rate of 22.58% over the last five years, indicating challenges in sustaining growth. This trend has contributed to the stock’s underperformance relative to the BSE500 index, where it has lagged consistently over the past three years.
Institutional Investor Activity and Shareholding
Institutional participation in Laxmi Organic Industries Ltd has diminished, with a reduction of 0.89% in their stake during the previous quarter. Currently, institutional investors hold 4.8% of the company’s shares. This decline in institutional ownership may reflect cautious sentiment given the company’s recent financial trajectory and valuation concerns.
Balance Sheet and Debt Profile
On a positive note, the company maintains a conservative capital structure with a low average debt-to-equity ratio of 0.06 times. This indicates limited reliance on debt financing, which may provide some stability amid earnings pressures.
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Mojo Score and Market Sentiment
Laxmi Organic Industries Ltd currently holds a Mojo Score of 23.0, categorised as a Strong Sell. This rating was downgraded from Sell on 3 Nov 2025, reflecting deteriorating fundamentals and market sentiment. The company’s market capitalisation grade is 3, indicating a relatively modest market cap within its sector.
The stock’s consistent underperformance against the benchmark indices and peers, combined with declining earnings and institutional interest, underscores the challenges faced by the company in regaining investor confidence.
Summary of Key Financial Indicators
To summarise, Laxmi Organic Industries Ltd’s key financial metrics are as follows:
- 52-week low price: Rs.147.3
- 52-week high price: Rs.240.95
- One-year stock return: -34.09%
- Sensex one-year return: +8.08%
- Return on Equity (ROE): 8.76%
- Return on Capital Employed (ROCE): 4.87%
- Price to Book Value: 2.2
- Debt to Equity Ratio: 0.06
- Quarterly PBT (excl. other income): Rs.11.57 crore (-54.6%)
- Quarterly PAT: Rs.11.02 crore (-56.2%)
- Institutional ownership: 4.8% (down 0.89% last quarter)
The stock’s recent decline to a 52-week low reflects a combination of subdued earnings, valuation concerns, and reduced institutional participation, all occurring despite a broadly positive market backdrop.
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