Laxmi Organic Industries Ltd Stock Hits All-Time Low Amid Prolonged Downtrend

Recent Price Movement and Market Context

On 27 Jan 2026, Laxmi Organic Industries Ltd recorded a closing price of Rs.136.45, the lowest in its trading history. This follows a two-day consecutive decline, during which the stock lost 3.83% in value. The day’s performance showed a marginal drop of 0.29%, slightly outperforming the Sensex’s 0.35% fall. However, the stock’s relative weakness is more pronounced over longer periods, with a one-month return of -17.38% compared to the Sensex’s -4.46%, and a three-month return of -29.97% against the benchmark’s -4.16%.

Over the past year, Laxmi Organic’s stock has depreciated by 34.77%, while the Sensex has appreciated by 7.81%. Year-to-date figures also highlight a decline of 18.09% for the stock, significantly underperforming the Sensex’s 4.66% drop. The three-year performance is particularly stark, with the stock losing 49.23% compared to the Sensex’s robust 36.95% gain. Notably, the stock has not recorded any appreciable gains over five and ten-year horizons, remaining flat at 0.00%, while the Sensex surged by 71.38% and 231.74% respectively.

Technical Indicators and Moving Averages

Technical analysis reveals that Laxmi Organic is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This sustained position beneath key technical levels signals continued downward momentum and a lack of short- to medium-term buying interest.

Financial Performance and Profitability Metrics

Laxmi Organic’s financial indicators underscore the challenges faced by the company. The average Return on Equity (ROE) stands at a modest 8.76%, indicating limited profitability generated from shareholders’ funds. This figure is notably low for the Specialty Chemicals sector, where higher returns are typically expected.

Operating profit has contracted at an annualised rate of 22.58% over the past five years, reflecting a sustained decline in core earnings. The company has reported negative results for three consecutive quarters, with Profit Before Tax excluding other income (PBT LESS OI) 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 over the same period.

Return on Capital Employed (ROCE) for the half-year period is at a low 4.87%, further highlighting the subdued efficiency in generating returns from capital investments. The latest ROE figure has also deteriorated to 4.3%, which, combined with a Price to Book Value ratio of 2, suggests an expensive valuation relative to the company’s profitability metrics.

Valuation and Comparative Performance

Despite the recent price decline, Laxmi Organic’s stock trades at a discount compared to its peers’ average historical valuations. However, this has not translated into improved returns or profitability. Over the last year, the stock’s profits have decreased by 37.7%, compounding the negative returns of 34.77% during the same period.

The company’s performance has consistently lagged behind the BSE500 benchmark over the past three years, with underperformance evident in each annual period. This persistent trend reflects ongoing difficulties in regaining market confidence and operational stability.

Balance Sheet and Shareholding Structure

On a positive note, Laxmi Organic maintains a conservative capital structure, with an average Debt to Equity ratio of just 0.06 times. This low leverage reduces financial risk and interest burden, although it has not been sufficient to offset the broader challenges faced by the company.

The majority shareholding remains with promoters, indicating concentrated ownership and control. This structure may influence strategic decisions and long-term direction, although recent performance metrics suggest limited success in reversing the downtrend.

Mojo Score and Market Sentiment

The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell as of 3 Nov 2025, downgraded from a previous Sell rating. This reflects a marked deterioration in market sentiment and analyst assessments. The Market Capitalisation Grade is rated at 3, indicating a relatively modest market cap within its sector.

Sector-wise, Laxmi Organic is part of the Specialty Chemicals industry, which has seen mixed performance. The stock’s recent returns have been largely in line with sector movements on a daily basis, but its longer-term trajectory remains significantly weaker.

Summary of Key Performance Indicators

To encapsulate, Laxmi Organic Industries Ltd’s key metrics as of the latest reporting period include:

• All-time low stock price: Rs.136.45
• Consecutive two-day decline: -3.83%
• One-year stock return: -34.77%
• Five-year operating profit CAGR: -22.58%
• Latest quarterly PBT LESS OI: Rs.11.57 crores (-54.6%)
• Latest quarterly PAT: Rs.11.02 crores (-56.2%)
• Half-year ROCE: 4.87%
• Average ROE: 8.76%
• Debt to Equity ratio: 0.06 times
• Mojo Grade: Strong Sell (downgraded from Sell)

These figures collectively illustrate the severity of the company’s current position within the market and its financial landscape.

Conclusion

Laxmi Organic Industries Ltd’s fall to an all-time low price of Rs.136.45 underscores a prolonged period of underperformance and financial contraction. The stock’s consistent lag behind benchmark indices and peers, combined with deteriorating profitability and valuation concerns, paints a challenging picture for the company’s current market standing. While the balance sheet remains conservatively leveraged, the overall financial and operational metrics indicate significant headwinds that have yet to be resolved.

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