Stock Price Movement and Volatility
On 21 Jan 2026, Laxmi Organic Industries Ltd recorded its lowest-ever share price at Rs.141.95. This decline comes amid a two-day losing streak, during which the stock has fallen by 3.47%. The day’s trading was marked by high volatility, with an intraday weighted average price volatility of 7.18%, indicating significant price fluctuations within the session.
The stock’s one-day performance showed a decrease of 0.31%, slightly underperforming the Sensex’s marginal fall of 0.05%. Over the past week, the stock declined by 4.08%, compared to the Sensex’s 1.49% drop. The disparity widens over longer periods: a one-month loss of 16.39% versus the Sensex’s 3.28%, and a three-month decline of 30.31% against the benchmark’s 2.70% fall.
Year-to-date, Laxmi Organic has dropped 15.25%, significantly underperforming the Sensex’s 3.61% decline. The stock’s three-year performance is particularly stark, with a 49.47% loss compared to the Sensex’s 35.50% gain. Over five and ten years, the stock has shown no appreciable growth, remaining flat, while the Sensex surged by 65.53% and 242.80% respectively.
Technical Indicators and Moving Averages
Technical analysis reveals that Laxmi Organic is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning typically signals a bearish trend and suggests limited short-term momentum. The stock’s relative weakness compared to its sector peers further emphasises the downward pressure it faces.
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Financial Performance and Profitability Metrics
Laxmi Organic’s financial indicators paint a challenging picture. The company’s average Return on Equity (ROE) stands at 8.76%, reflecting modest profitability relative to shareholders’ funds. This figure is considered low within the specialty chemicals industry, where higher ROE values are typically expected for sustainable growth.
Operating profit has contracted at an annualised rate of 22.58% over the past five years, signalling a persistent decline in core earnings. The company has reported negative results for three consecutive quarters, with Profit Before Tax excluding other income (PBT LESS OI) for the latest quarter at Rs.11.57 crores, down 54.6% compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) for the quarter was Rs.11.02 crores, a 56.2% decrease over the same period.
Return on Capital Employed (ROCE) for the half-year period is notably low at 4.87%, further underscoring the subdued efficiency in generating returns from capital investments. The company’s ROE for the latest period has declined to 4.3%, while its Price to Book Value ratio remains at 2.1, indicating a valuation that may be considered expensive relative to its profitability metrics.
Valuation and Market Capitalisation
Despite the recent price decline, Laxmi Organic’s stock trades at a discount compared to its peers’ historical valuations. The company holds a Market Cap Grade of 3, reflecting its mid-tier market capitalisation status within the specialty chemicals sector. The stock’s Mojo Score has deteriorated to 23.0, with a corresponding Mojo Grade of Strong Sell, an upgrade in severity from the previous Sell rating assigned on 3 Nov 2025.
The stock’s underperformance is evident when compared to the BSE500 index, with losses recorded in each of the last three annual periods. Over the past year, the stock’s returns of -37.39% have been accompanied by a near-equivalent decline in profits of 37.7%, highlighting the correlation between earnings deterioration and market valuation.
Capital Structure and Shareholding
Laxmi Organic maintains a conservative capital structure, with an average Debt to Equity ratio of 0.06 times, indicating minimal reliance on debt financing. The majority shareholding is held by promoters, which may influence strategic decisions and governance dynamics.
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Summary of Performance Trends
Over the last five years, Laxmi Organic Industries Ltd has failed to generate positive returns, with a flat performance contrasting sharply with the Sensex’s robust gains of over 65%. The stock’s three-year decline of nearly 50% starkly contrasts with the benchmark’s 35.5% appreciation. This persistent underperformance is mirrored in the company’s financial results, which have shown consistent contraction in profitability and returns on capital.
The stock’s recent volatility and trading below all major moving averages reinforce the prevailing negative momentum. While the company’s low debt levels provide some financial stability, the subdued earnings and valuation metrics reflect the challenges faced by Laxmi Organic in maintaining growth and shareholder value.
Conclusion
Laxmi Organic Industries Ltd’s fall to an all-time low of Rs.141.95 marks a significant point in its prolonged downward trajectory. The stock’s performance relative to the Sensex and sector peers, combined with deteriorating profitability and valuation metrics, illustrates the extent of the challenges confronting the company. The current Mojo Grade of Strong Sell and the associated financial indicators provide a comprehensive view of the stock’s position within the specialty chemicals sector as of January 2026.
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