Recent Price Movements and Market Context
On 24 Feb 2026, Laxmi Organic Industries Ltd’s share price fell by 1.84%, underperforming the Sensex which declined by 1.02% on the same day. This drop extended a three-day losing streak, during which the stock has depreciated by 5.55%. Over the past week, the stock’s decline has been more pronounced at 6.65%, compared to a modest 1.20% fall in the Sensex. The underperformance is even starker over longer periods: a 27.67% drop over three months versus a 2.89% decline in the Sensex, and a 29.08% fall over the last year while the Sensex gained 10.73%.
Laxmi Organic’s price currently trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. The stock has also underperformed the BSE500 index consistently over the past three years, with a cumulative three-year return of -48.17% against a 38.65% gain for the benchmark.
Financial Performance and Valuation Metrics
The company’s financial health has shown signs of strain, with operating profits declining at a compound annual growth rate (CAGR) of -8.49% over the last five years. Profitability metrics remain subdued, with an average Return on Equity (ROE) of 8.76%, indicating limited efficiency in generating returns from shareholders’ funds.
Recent results have been negative for four consecutive quarters, with the latest six-month Profit After Tax (PAT) standing at Rs.36.43 crores, reflecting a contraction of 36.53%. Return on Capital Employed (ROCE) for the half-year period is notably low at 4.87%, while cash and cash equivalents have dwindled to Rs.82.44 crores, the lowest recorded in recent periods.
Despite these challenges, the stock’s valuation remains relatively expensive, trading at a Price to Book (P/B) ratio of 2.0, which is high given the company’s ROE of 4.3%. This valuation is discounted compared to historical averages of its peers, yet it underscores the market’s cautious stance amid deteriorating fundamentals.
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Comparative Performance and Market Position
Over the past year, Laxmi Organic Industries Ltd’s stock has generated a return of -29.08%, while its profits have declined by 41.5%. This stark contrast highlights the pressure on earnings that has weighed heavily on the share price. The company’s market capitalisation grade stands at 3, reflecting a mid-tier valuation relative to its sector peers.
The stock’s Mojo Score is 9.0, with a Mojo Grade of Strong Sell as of 3 Nov 2025, upgraded from a Sell rating. This grading reflects the company’s weak long-term fundamentals and deteriorating financial metrics. The majority shareholding remains with promoters, indicating concentrated ownership.
Sector and Industry Context
Laxmi Organic operates within the specialty chemicals industry, a sector that has experienced varied performance across its constituents. The company’s underperformance relative to its sector peers and the broader market indices underscores the challenges it faces in maintaining competitive positioning and profitability.
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Summary of Key Financial Indicators
The company’s financial trajectory over the last five years reveals a decline in operating profits at a CAGR of -8.49%, coupled with a modest average ROE of 8.76%. The latest half-year figures show a PAT of Rs.36.43 crores, down 36.53%, and a ROCE of 4.87%, indicating limited capital efficiency. Cash reserves have contracted to Rs.82.44 crores, the lowest in recent periods, which may constrain operational flexibility.
Valuation metrics indicate a Price to Book ratio of 2.0, which is relatively high given the subdued profitability metrics. The stock’s consistent underperformance against the Sensex and BSE500 indices over multiple time horizons further reflects the challenges faced by the company in delivering shareholder value.
Concluding Observations
Laxmi Organic Industries Ltd’s fall to an all-time low of Rs.133.5 marks a significant point in its market journey, underscored by sustained declines in profitability and valuation. The stock’s performance has lagged behind both sector and market benchmarks consistently, with key financial indicators signalling ongoing pressures. The company’s majority promoter ownership remains unchanged, while its Mojo Grade of Strong Sell reflects the current assessment of its fundamentals and market standing.
The stock’s downward trajectory and financial metrics provide a comprehensive picture of its current position within the specialty chemicals sector, highlighting the severity of its recent market performance.
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